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Javier E

What Is Wrong with the West's Economies? by Edmund S. Phelps | The New York Review of B... - 1 views

www.nybooks.com/...what-wrong-wests-economies

economics theory science

shared by Javier E on 22 Aug 15 - No Cached
  • What is wrong with the economies of the West—and with economics?
  • With little or no effective policy initiative giving a lift to the less advantaged, the jarring market forces of the past four decades—mainly the slowdowns in productivity that have spread over the West and, of course, globalization, which has moved much low-wage manufacturing to Asia—have proceeded, unopposed, to drag down both employment and wage rates at the low end. The setback has cost the less advantaged not only a loss of income but also a loss of what economists call inclusion—access to jobs offering work and pay that provide self-respect.
  • The classical idea of political economy has been to let wage rates sink to whatever level the market takes them, and then provide everyone with the “safety net” of a “negative income tax,” unemployment insurance, and free food, shelter, clothing, and medical care
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  • This failing in the West’s economies is also a failing of economics
  • many people have long felt the desire to do something with their lives besides consuming goods and having leisure. They desire to participate in a community in which they can interact and develop.
  • Our prevailing political economy is blind to the very concept of inclusion; it does not map out any remedy for the deficiency
  • injustice of another sort. Workers in decent jobs view the economy as unjust if they or their children have virtually no chance of climbing to a higher rung in the socioeconomic ladder
  • “Money is like blood. You need it to live but it isn’t the point of life.”4
  • justice is not everything that people need from their economy. They need an economy that is good as well as just. And for some decades, the Western economies have fallen short of any conception of a “good economy”—an economy offering a “good life,” or a life of “richness,” as some humanists call it
  • The good life as it is popularly conceived typically involves acquiring mastery in one’s work, thus gaining for oneself better terms—or means to rewards, whether material, like wealth, or nonmaterial—an experience we may call “prospering.”
  • As humanists and philosophers have conceived it, the good life involves using one’s imagination, exercising one’s creativity, taking fascinating journeys into the unknown, and acting on the world—an experience I call “flourishing.”
  • prospering and flourishing became prevalent in the nineteenth century when, in Europe and America, economies emerged with the dynamism to generate their own innovation.
  • What is the mechanism of the slowdown in productivity
  • prospering
  • In nineteenth-century Britain and America, and later Germany and France, a culture of exploration, experimentation, and ultimately innovation grew out of the individualism of the Renaissance, the vitalism of the Baroque era, and the expressionism of the Romantic period.
  • What made innovating so powerful in these economies was that it was not limited to elites. It permeated society from the less advantaged parts of the population on up.
  • High-enough wages, low-enough unemployment, and wide-enough access to engaging work are necessary for a “good-enough” economy—though far from sufficient. The material possibilities of the economy must be adequate for the nonmaterial possibilities to be widespread—the satisfactions of prospering and of flourishing through adventurous, creative, and even imaginative work.
  • today’s standard economics. This economics, despite its sophistication in some respects, makes no room for economies in which people are imagining new products and using their creativity to build them. What is most fundamentally “wrong with economics” is that it takes such an economy to be the norm—to be “as good as it gets.”
  • ince around 1970, or earlier in some cases, most of the continental Western European economies have come to resemble more completely the mechanical model of standard economics. Most companies are highly efficient. Households, apart from the very low-paid or unemployed, have gone on saving
  • In most of Western Europe, economic dynamism is now at lows not seen, I would judge, since the advent of dynamism in the nineteenth century. Imagining and creating new products has almost disappeared from the continent
  • The bleak levels of both unemployment and job satisfaction in Europe are testimony to its dreary economies.
  • a recent survey of household attitudes found that, in “happiness,” the median scores in Spain (54), France (51), Italy (48), and Greece (37) are all below those in the upper half of the nations labeled “emerging”—Mexico (79), Venezuela (74), Brazil (73), Argentina (66), Vietnam (64), Colombia (64), China (59), Indonesia (58), Chile (58), and Malaysia (56)
  • The US economy is not much better. Two economists, Stanley Fischer and Assar Lindbeck, wrote of a “Great Productivity Slowdown,” which they saw as beginning in the late 1960s.11 The slowdown in the growth of capital and labor combined—what is called “total factor productivity”—is star
  • though the injustices in the West’s economies are egregious, they ought not to be seen as a major cause of the productivity slowdowns and globalization. (For one thing, a slowdown of productivity started in the US in the mid-1960s and the sharp loss of manufacturing jobs to poorer countries occurred much later—from the late 1970s to the early 1990s.) Deeper causes must be at work.
  • The plausible explanation of the syndrome in America—the productivity slowdown and the decline of job satisfaction, among other things—is a critical loss of indigenous innovation in the established industries like traditional manufacturing and services that was not nearly offset by the innovation that flowered in a few new industries
  • hat then caused this narrowing of innovation? No single explanation is persuasive. Yet two classes of explanations have the ring of truth. One points to suppression of innovation by vested interests
  • some professions, such as those in education and medicine, have instituted regulation and licensing to curb experimentation and change, thus dampening innovation
  • established corporations—their owners and stakeholders—and entire industries, using their lobbyists, have obtained regulations and patents that make it harder for new firms to gain entry into the market and to compete with incumbents.
  • The second explanation points to a new repression of potential innovators by families and schools. As the corporatist values of control, solidarity, and protection are invoked to prohibit innovation, traditional values of conservatism and materialism are often invoked to inhibit a young person from undertaking an innovation.
  • ow might Western nations gain—or regain—widespread prospering and flourishing? Taking concrete actions will not help much without fresh thinking: people must first grasp that standard economics is not a guide to flourishing—it is a tool only for efficiency.
  • Widespread flourishing in a nation requires an economy energized by its own homegrown innovation from the grassroots on up. For such innovation a nation must possess the dynamism to imagine and create the new—economic freedoms are not sufficient. And dynamism needs to be nourished with strong human values.
  • a reform of education stands out. The problem here is not a perceived mismatch between skills taught and skills in demand
  • The problem is that young people are not taught to see the economy as a place where participants may imagine new things, where entrepreneurs may want to build them and investors may venture to back some of them. It is essential to educate young people to this image of the economy.
  • It will also be essential that high schools and colleges expose students to the human values expressed in the masterpieces of Western literature, so that young people will want to seek economies offering imaginative and creative careers. Education systems must put students in touch with the humanities in order to fuel the human desire to conceive the new and perchance to achieve innovations
  • This reorientation of general education will have to be supported by a similar reorientation of economic education.
Javier E

Economics of Good and Evil: The Quest for Economic Meaning from Gilgamesh to Wall Stree... - 1 views

DIIGO_FILE_HOME/7ui9/74ec4c99e72deda4a64da10692a15bf6

economics history literature good evil theory philosophy philosophers Bible Gilgamesh Adam Smith

shared by Javier E on 15 Aug 19 - No Cached
  • Instead of self-confident and self-centered answers, the author humbly asks fundamental questions: What is economics? What is its meaning? Where does this new religion, as it is sometimes called, come from? What are its possibilities and its limitations and borders, if there are any? Why are we so dependent on permanent growing of growth and growth of growing of growth? Where did the idea of progress come from, and where is it leading us? Why are so many economic debates accompanied by obsession and fanaticism?
  • The majority of our political parties act with a narrow materialistic focus when, in their programs, they present the economy and finance first; only then, somewhere at the end, do we find culture as something pasted on or as a libation for a couple of madmen.
  • most of them—consciously or unconsciously—accept and spread the Marxist thesis of the economic base and the spiritual superstructure.
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  • He tries to break free of narrow specialization and cross the boundaries between scientific disciplines. Expeditions beyond economics’ borders and its connection to history, philosophy, psychology, and ancient myths are not only refreshing, but necessary for understanding the world of the twenty-first century.
  • Reality is spun from stories, not from material. Zdeněk Neubauer
  • Before it was emancipated as a field, economics lived happily within subsets of philosophy—ethics, for example—miles away from today’s concept of economics as a mathematical-allocative science that views “soft sciences” with a scorn born from positivistic arrogance. But our thousand-year “education” is built on a deeper, broader, and oftentimes more solid base. It is worth knowing about.
  • Outside of our history, we have nothing more.
  • The study of the history of a certain field is not, as is commonly held, a useless display of its blind alleys or a collection of the field’s trials and errors (until we got it right), but history is the fullest possible scope of study of a menu that the given field can offer.
  • History of thought helps us to get rid of the intellectual brainwashing of the age, to see through the intellectual fashion of the day, and to take a couple of steps back.
  • “The separation between the history of a science, its philosophy, and the science itself dissolves into thin air, and so does the separation between science and non-science; differences between the scientific and unscientific are vanishing.”
  • we seek to chart the development of the economic ethos. We ask questions that come before any economic thinking can begin—both philosophically and, to a degree, historically. The area here lies at the very borders of economics—and often beyond. We may refer to this as protoeconomics (to borrow a term from protosociology) or, perhaps more fittingly, metaeconomics (to borrow a term from metaphysics).
  • stories; Adam Smith believed. As he puts it in The Theory of Moral Sentiments, “the desire of being believed, or the desire of persuading, of leading and directing other people, seems to be one of the strongest of all our natural desires.”
  • “The human mind is built to think in terms of narratives … in turn, much of human motivation comes from living through a story of our lives, a story that we tell to ourselves and that creates a framework of our motivation. Life could be just ‘one damn thing after another’ if it weren’t for such stories. The same is true for confidence in a nation, a company, or an institution. Great leaders are foremost creators of stories.”
  • contrary to what our textbooks say, economics is predominantly a normative field. Economics not only describes the world but is frequently about how the world should be (it should be effective, we have an ideal of perfect competition, an ideal of high-GDP growth in low inflation, the effort to achieve high competitiveness …). To this end, we create models, modern parables,
  • I will try to show that mathematics, models, equations, and statistics are just the tip of the iceberg of economics; that the biggest part of the iceberg of economic knowledge consists of everything else; and that disputes in economics are rather a battle of stories and various metanarratives than anything else.
  • That is the reason for this book: to look for economic thought in ancient myths and, vice versa, to look for myths in today’s economics.
  • is a paradox that a field that primarily studies values wants to be value-free. One more paradox is this: A field that believes in the invisible hand of the market wants to be without mysteries.
  • Almost all of the key concepts by which economics operates, both consciously and unconsciously, have a long history, and their roots extend predominantly outside the range of economics, and often completely beyond that of science.
  • The History of Animal Spirits: Dreams Never Sleep
  • In this sense, “the study of economics is too narrow and too fragmentary to lead to valid insight, unless complemented and completed by a study of metaeconomics.”17
  • The more important elements of a culture or field of inquiry such as economics are found in fundamental assumptions that adherents of all the various systems within the epoch unconsciously presuppose. Such assumptions appear so obvious that people do not know what they are assuming, because no other way of putting things has ever occurred to them, as the philosopher Alfred Whitehead notes in Adventures of Ideas.
  • I argue that economic questions were with mankind long before Adam Smith. I argue that the search for values in economics did not start with Adam Smith but culminated with him.
  • We should go beyond economics and study what beliefs are “behind the scenes,” ideas that have often become the dominant yet unspoken assumptions in our theories. Economics is surprisingly full of tautologies that economists are predominantly unaware of. I
  • argue that economics should seek, discover, and talk about its own values, although we have been taught that economics is a value-free science. I argue that none of this is true and that there is more religion, myth, and archetype in economics than there is mathematics.
  • In a way, this is a study of the evolution of both homo economicus and, more importantly, the history of the animal spirits within him. This book tries to study the evolution of the rational as well as the emotional and irrational side of human beings.
  • I argue that his most influential contribution to economics was ethical. His other thoughts had been clearly expressed long before him, whether on specialization, or on the principle of the invisible hand of the market. I try to show that the principle of the invisible hand of the market is much more ancient and developed long before Adam Smith. Traces of it appear even in the Epic of Gilgamesh, Hebrew thought, and in Christianity, and it is expressly stated by Aristophanes and Thomas Aquinas.
  • This is not a book on the thorough history of economic thought. The author aims instead to supplement certain chapters on the history of economic thought with a broader perspective and analysis of the influences that often escape the notice of economists and the wider public.
  • Progress (Naturalness and Civilization)
  • The Economy of Good and Evil
  • from his beginnings, man has been marked as a naturally unnatural creature, who for unique reasons surrounds himself with external possessions. Insatiability, both material and spiritual, are basic human metacharacteristics, which appear as early as the oldest myths and stories.
  • the Hebrews, with linear time, and later the Christians gave us the ideal (or amplified the Hebrew ideal) we now embrace. Then the classical economists secularized progress. How did we come to today’s progression of progress, and growth for growth’s sake?
  • The Need for Greed: The History of Consumption and Labor
  • Metamathematics From where did economics get the concept of numbers as the very foundation of the world?
  • mathematics at the core of economics, or is it just the icing of the cake, the tip of the iceberg of our field’s inquiry?
  • idea that we can manage to utilize our natural egoism, and that this evil is good for something, is an ancient philosophical and mythical concept. We will also look into the development of the ethos of homo economicus, the birth of “economic man.”
  • All of economics is, in the end, economics of good and evil. It is the telling of stories by people of people to people. Even the most sophisticated mathematical model is, de facto, a story, a parable, our effort to (rationally) grasp the world around us.
  • Masters of the Truth
  • Originally, truth was a domain of poems and stories, but today we perceive truth as something much more scientific, mathematical. Where does one go (to shop) for the truth? And who “has the truth” in our epoch?
  • Our animal spirits (something of a counterpart to rationality) are influenced by the archetype of the hero and our concept of what is good.
  • The entire history of ethics has been ruled by an effort to create a formula for the ethical rules of behavior. In the final chapter we will show the tautology of Max Utility, and we will discuss the concept of Max Good.
  • The History of the Invisible Hand of the Market and Homo Economicus
  • We understand “economics” to mean a broader field than just the production, distribution, and consumption of goods and services. We consider economics to be the study of human relations that are sometimes expressible in numbers, a study that deals with tradables, but one that also deals with nontradables (friendship, freedom, efficiency, growth).
  • When we mention economics in this book, we mean the mainstream perception of it, perhaps as best represented by Paul Samuelson.
  • By the term homo economicus, we mean the primary concept of economic anthropology. It comes from the concept of a rational individual, who, led by narrowly egotistical motives, sets out to maximize his benefit.
  • the Epic of Gilgamesh bears witness to the opposite—despite the fact that the first written clay fragments (such as notes and bookkeeping) of our ancestors may have been about business and war, the first written story is mainly about great friendship and adventure.
  • there is no mention of either money or war; for example, not once does anyone in the whole epic sell or purchase something.5 No nation conquers another, and we do not encounter a mention even of the threat of violence.
  • is a story of nature and civilization, of heroism, defiance, and the battle against the gods, and evil; an epic about wisdom, immortality, and also futility.
  • Gilgamesh becomes a hero not only due to his strength, but also due to discoveries and deeds whose importance were in large part economic—direct gaining of construction materials in the case of felling the cedar forest, stopping Enkidu from devastating Uruk’s economy, and discovering new desert routes during his expeditions.
  • Even today, we often consider the domain of humanity (human relations, love, friendship, beauty, art, etc.) to be unproductive;
  • Even today we live in Gilgamesh’s vision that human relations—and therefore humanity itself—are a disturbance to work and efficiency; that people would perform better if they did not “waste” their time and energy on nonproductive things.
  • But it is in friendship where—often by-the-way, as a side product, an externality—ideas and deeds are frequently performed or created that together can altogether change the face of society.19 Friendship can go against an ingrained system in places where an individual does not have the courage to do so himself or herself.
  • As Joseph Stiglitz says, One of the great “tricks” (some say “insights”) of neoclassical economics is to treat labour like any other factor of production. Output is written as a function of inputs—steel, machines, and labour. The mathematics treats labour like any other commodity, lulling one into thinking of labour like an ordinary commodity, such as steel or plastic.
  • Even the earliest cultures were aware of the value of cooperation on the working level—today we call this collegiality, fellowship, or, if you want to use a desecrated term, comradeship. These “lesser relationships” are useful and necessary for society and for companies because work can be done much faster and more effectively if people get along with each other on a human level
  • But true friendship, which becomes one of the central themes of the Epic of Gilgamesh, comes from completely different material than teamwork. Friendship, as C. S. Lewis accurately describes it, is completely uneconomical, unbiological, unnecessary for civilization, and an unneeded relationship
  • Here we have a beautiful example of the power of friendship, one that knows how to transform (or break down) a system and change a person. Enkidu, sent to Gilgamesh as a punishment from the gods, in the end becomes his faithful friend, and together they set out against the gods. Gilgamesh would never have gathered the courage to do something like that on his own—nor would Enkidu.
  • Due to their friendship, Gilgamesh and Enkidu then intend to stand up to the gods themselves and turn a holy tree into mere (construction) material they can handle almost freely, thereby making it a part of the city-construct, part of the building material of civilization, thus “enslaving” that which originally was part of wild nature. This is a beautiful proto-example of the shifting of the borders between the sacred and profane (secular)—and to a certain extent also an early illustration of the idea that nature is there to provide cities and people with raw material and production resources.
  • started with Babylonians—rural nature becomes just a supplier of raw materials, resources (and humans the source of human resources). Nature is not the garden in which humans were created and placed, which they should care for and which they should reside in, but becomes a mere reservoir for natural (re)sources.
  • But labour is unlike any other commodity. The work environment is of no concern for steel; we do not care about steel’s well-being.16
  • Both heroes change—each from opposite poles—into humans. In this context, a psychological dimension to the story may be useful: “Enkidu (…) is Gilgamesh’s alter ego, the dark, animal side of his soul, the complement to his restless heart. When Gilgamesh found Enkidu, he changed from a hated tyrant into the protector of his city. (…)
  • To be human seems to be somewhere in between, or both of these two. We
  • this moment of rebirth from an animal to a human state, the world’s oldest preserved epic implicitly hints at something highly important. Here we see what early cultures considered the beginning of civilization. Here is depicted the difference between people and animals or, better, savages. Here the epic quietly describes birth, the awakening of a conscious, civilized human. We are witnesses to the emancipation of humanity from animals,
  • The entire history of culture is dominated by an effort to become as independent as possible from the whims of nature.39 The more developed a civilization is, the more an individual is protected from nature and natural influences and knows how to create around him a constant or controllable environment to his liking.
  • The price we pay for independence from the whims of nature is dependence on our societies and civilizations. The more sophisticated a given society is as a whole, the less its members are able to survive on their own as individuals, without society.
  • The epic captures one of the greatest leaps in the development of the division of labor. Uruk itself is one of the oldest cities of all, and in the epic it reflects a historic step forward in specialization—in the direction of a new social city arrangement. Because of the city wall, people in the city can devote themselves to things other than worrying about their own safety, and they can continue to specialize more deeply.
  • Human life in the city gains a new dimension and suddenly it seems more natural to take up issues going beyond the life span of an individual. “The city wall symbolizes as well as founds the permanence of the city as an institution which will remain forever and give its inhabitants the certainty of unlimited safety, allowing them to start investing with an outlook reaching far beyond the borders of individual life.
  • The wall around the city of Uruk is, among other things, a symbol of an internal distancing from nature, a symbol of revolts against submission to laws that do not come under the control of man and that man can at most discover and use to his benefit.
  • “The chief thing which the common-sense individual wants is not satisfactions for the wants he had, but more, and better wants.”47
  • If a consumer buys something, theoretically it should rid him of one of his needs—and the aggregate of things they need should be decreased by one item. In reality, though, the aggregate of “I want to have” expands together with the growing aggregate of “I have.”
  • can be said that Enkidu was therefore happy in his natural state, because all of his needs were satiated. On the other hand, with people, it appears that the more a person has, the more developed and richer, the greater the number of his needs (including the unsaturated ones).
  • the Old Testament, this relationship is perceived completely differently. Man (humanity) is created in nature, in a garden. Man was supposed to care for the Garden of Eden and live in harmony with nature and the animals. Soon after creation, man walks naked and is not ashamed, de facto the same as the animals. What is characteristic is that man dresses (the natural state of creation itself is not enough for him), and he (literally and figuratively) covers52 himself—in shame after the fall.53
  • Nature is where one goes to hunt, collect crops, or gather the harvest. It is perceived as the saturator of our needs and nothing more. One goes back to the city to sleep and be “human.” On the contrary, evil resides in nature. Humbaba lives in the cedar forest, which also happens to be the reason to completely eradicate it.
  • Symbolically, then, we can view the entire issue from the standpoint of the epic in the following way: Our nature is insufficient, bad, evil, and good (humane) occurs only after emancipation from nature (from naturalness), through culturing and education. Humanity is considered as being in civilization.
  • The city was frequently (at least in older Jewish writings) a symbol of sin, degeneration, and decadence—nonhumanity. The Hebrews were originally a nomadic nation, one that avoided cities. It is no accident that the first important city57 mentioned in the Bible is proud Babylon,58 which God later turns to dust.
  • is enough, for example, to read the Book of Revelation to see how the vision of paradise developed from the deep Old Testament period, when paradise was a garden. John describes his vision of heaven as a city—paradise is in New Jerusalem, a city where the dimensions of the walls(!) are described in detail, as are the golden streets and gates of pearl.
  • Hebrews later also chose a king (despite the unanimous opposition of God’s prophets) and settled in cities, where they eventually founded the Lord’s Tabernacle and built a temple for Him. The city of Jerusalem later gained an illustrious position in all of religion.
  • this time Christianity (as well as the influence of the Greeks) does not consider human naturalness to be an unambiguous good, and it does not have such an idyllic relationship to nature as the Old Testament prophets.
  • If a tendency toward good is not naturally endowed in people, it must be imputed from above through violence or at least the threat of violence.
  • If we were to look at human naturalness as a good, then collective social actions need a much weaker ruling hand. If people themselves have a natural tendency (propensity) toward good, this role does not have to be supplied by the state, ruler, or, if you wish, Leviathan.
  • How does this affect economics?
  • us return for the last time to the humanization of the wild Enkidu, which is a process we can perceive with a bit of imagination as the first seed of the principle of the market’s invisible hand, and therefore the parallels with one of the central schematics of economic thinking.
  • Sometimes it is better to “harness the devil to the plow” than to fight with him. Instead of summoning up enormous energy in the fight against evil, it is better to use its own energy to reach a goal we desire; setting up a mill on the turbulent river instead of futile efforts to remove the current. This is also how Saint Prokop approached it in one of the oldest Czech legends.
  • Enkidu caused damage and it was impossible to fight against him. But with the help of a trap, trick, this evil was transformed into something that greatly benefited civilization.
  • By culturing and “domesticating” Enkidu, humanity tamed the uncontrollable wild and chaotic evil
  • Enkidu devastated the doings (the external, outside-the-walls) of the city. But he was later harnessed and fights at the side of civilization against nature, naturalness, the natural state of things.
  • A similar motif appears a thousand years after the reversal, which is well known even to noneconomists as the central idea of economics: the invisible hand of the market.
  • A similar story (reforming something animally wild and uncultivated in civilizational achievement) is used by Thomas Aquinas in his teachings. Several centuries later, this idea is fully emancipated in the hands of Bernard Mandeville and his Fable of the Bees: or, Private Vices, Publick Benefits. The economic and political aspects of this idea are—often incorrectly—ascribed to Adam Smith.
  • Here the individual does not try anymore to maximize his goods or profits, but what is important is writing his name in human memory in the form of heroic acts or deeds.
  • immortality, one connected with letters and the cult of the word: A name and especially a written name survives the body.”77
  • After this disappointment, he comes to the edge of the sea, where the innkeeper Siduri lives. As tonic for his sorrow, she offers him the garden of bliss, a sort of hedonistic fortress of carpe diem, where a person comes to terms with his mortality and at least in the course of the end of his life maximizes earthly pleasures, or earthly utility.
  • In the second stage, after finding his friend Enkidu, Gilgamesh abandons the wall and sets out beyond the city to maximalize heroism. “In his (…) search of immortal life, Gilgamesh
  • The hero refuses hedonism in the sense of maximizing terrestrial pleasure and throws himself into things that will exceed his life. In the blink of an eye, the epic turns on its head the entire utility maximization role that mainstream economics has tirelessly tried to sew on people as a part of their nature.81
  • It is simpler to observe the main features of our civilization at a time when the picture was more readable—at a time when our civilization was just being born and was still “half-naked.” In other words, we have tried to dig down to the bedrock of our written civilization;
  • today remember Gilgamesh for his story of heroic friendship with Enkidu, not for his wall, which no longer reaches monumental heights.
  • the eleventh and final tablet, Gilgamesh again loses what he sought. Like Sisyphus, he misses his goal just before the climax
  • is there something from it that is valid today? Have we found in Gilgamesh certain archetypes that are in us to this day?
  • The very existence of questions similar to today’s economic ones can be considered as the first observation. The first written considerations of the people of that time were not so different from those today. In other words: The epic is understandable for us, and we can identify with it.
  • We have also been witnesses to the very beginnings of man’s culturing—a great drama based on a liberation and then a distancing from the natural state.
  • Let us take this as a memento in the direction of our restlessness, our inherited dissatisfaction and the volatility connected to it. Considering that they have lasted five thousand years and to this day we find ourselves in harmony with a certain feeling of futility, perhaps these characteristics are inherent in man.
  • Gilgamesh had a wall built that divided the city from wild nature and created a space for the first human culture. Nevertheless, “not even far-reaching works of civilization could satisfy human desire.”
  • Friendship shows us new, unsuspected adventures, gives us the opportunity to leave the wall and to become neither its builder nor its part—to not be another brick in the wall.
  • with the phenomenon of the creation of the city, we have seen how specialization and the accumulation of wealth was born, how holy nature was transformed into a secular supplier of resources, and also how humans’ individualistic ego was emancipated.
  • to change the system, to break down that which is standing and go on an expedition against the gods (to awaken, from naïveté to awakening) requires friendship.
  • For small acts (hunting together, work in a factory), small love is enough: Camaraderie. For great acts, however, great love is necessary, real love: Friendship. Friendship that eludes the economic understanding of quid pro quo. Friendship gives. One friend gives (fully) for the other. That is friendship for life and death,
  • The thought that humanity comes at the expense of efficiency is just as old as humanity itself—as we have shown, subjects without emotion are the ideal of many tyrants.
  • The epic later crashes this idea through the friendship of Gilgamesh and Enkidu. Friendship—the biologically least essential love, which at first sight appears to be unnecessary
  • less a civilized, city person is dependent on nature, the more he or she is dependent on the rest of society. Like Enkidu, we have exchanged nature for society; harmony with (incalculable) nature for harmony with (incalculable) man.
  • human nature good or evil? To this day these questions are key for economic policy: If we believe that man is evil in his nature, therefore that a person himself is dog eat dog (animal), then the hard hand of a ruler is called for. If we believe that people in and of themselves, in their nature, gravitate toward good, then it is possible to loosen up the reins and live in a society that is more laissez-faire.
  • For a concept of historical progress, for the undeification of heroes, rulers, and nature, mankind had to wait for the Hebrews.
  • Because nature is not undeified, it is beyond consideration to explore it, let alone intervene in it (unless a person was a two-thirds god like Gilgamesh). It
  • They practiced money lending, traded in many assets (…) and especially were engaged in the trading of shares on capital markets, worked in currency exchange and frequently figured as mediators in financial transactions (…), they functioned as bankers and participated in emissions of all possible forms.
  • As regards modern capitalism (as opposed to the ancient and medieval periods) … there are activities in it which are, in certain forms, inherently (and completely necessarily) present—both from an economic and legal standpoint.7
  • As early as the “dark” ages, the Jews commonly used economic tools that were in many ways ahead of their time and that later became key elements of the modern economy:
  • Gilgamesh’s story ends where it began. There is a consistency in this with Greek myths and fables: At the end of the story, no progress occurs, no essential historic change; the story is set in indefinite time, something of a temporal limbo.
  • Jews believe in historical progress, and that progress is in this world.
  • For a nation originally based on nomadism, where did this Jewish business ethos come from? And can the Hebrews truly be considered as the architects of the values that set the direction of our civilization’s economic thought?
  • Hebrew religiosity is therefore strongly connected with this world, not with any abstract world, and those who take pleasure in worldly possessions are not a priori doing anything wrong.
  • PROGRESS: A SECULARIZED RELIGION One of the things the writers of the Old Testament gave to mankind is the idea and notion of progress. The Old Testament stories have their development; they change the history of the Jewish nation and tie in to each other. The Jewish understanding of time is linear—it has a beginning and an end.
  • The observance of God’s Commandments in Judaism leads not to some ethereal other world, but to an abundance of material goods (Genesis 49:25–26, Leviticus 26:3–13, Deuteronomy 28:1–13) (…) There are no accusing fingers pointed at
  • There are no echoes of asceticism nor for the cleansing and spiritual effect of poverty. It is fitting therefore, that the founders of Judaism, the Patriarchs Abraham, Isaac and Jacob, were all wealthy men.12
  • about due to a linear understanding of history. If history has a beginning as well as an end, and they are not the same point, then exploration suddenly makes sense in areas where the fruits are borne only in the next generation.
  • What’s more, economic progress has almost become an assumption of modern functional societies. We expect growth. We take it automatically. Today, if nothing “new” happens, if GDP does not grow (we say it stagnates) for several quarters, we consider it an anomaly.
  • however, the idea of progress itself underwent major changes, and today we perceive it very differently. As opposed to the original spiritual conceptions, today we perceive progress almost exclusively in an economic or scientific-technological sense.
  • Because care for the soul has today been replaced by care for external things,
  • This is why we must constantly grow, because we (deep down and often implicitly) believe that we are headed toward an (economic) paradise on Earth.
  • Only since the period of scientific-technological revolution (and at a time when economics was born as an independent field) is material progress automatically assumed.
  • Jewish thought is the most grounded, most realistic school of thought of all those that have influenced our culture.17 An abstract world of ideas was unknown to the Jews. To this day it is still forbidden to even depict God, people, and animals in symbols, paintings, statues, and drawings.
  • economists have become key figures of great importance in our time (Kacířské eseje o filosofii dějin [Heretical Essays in the Philosophy of History]). They are expected to perform interpretations of reality, give prophetic services (macroeconomic forecasts), reshape reality (mitigate the impacts of the crisis, speed up growth), and, in the long run, provide leadership on the way to the Promised Land—paradise on Earth.
  • REALISM AND ANTIASCETICISM Aside from ideas of progress, the Hebrews brought another very fundamental contribution to our culture: The desacralization of heroes, nature, and rulers.
  • Voltaire writes: “It certain fact is, that in his public laws he [Moses] never so much as once made mention of a life to come, limiting all punishments and all rewards to the present life.”21
  • As opposed to Christianity, the concept of an extraterrestrial paradise or heaven was not developed much in Hebrew thought.19 The paradise of the Israelites—Eden—was originally placed on Earth at a given place in Mesopotamia20 and at a given time,
  • The Hebrews consider the world to be real—not just a shadow reflection of a better world somewhere in the cloud of ideas, something the usual interpretation of history ascribes to Plato. The soul does not struggle against the body and is not its prisoner, as Augustine would write later.
  • The land, the world, the body, and material reality are for Jews the paramount setting for divine history, the pinnacle of creation. This idea is the conditio sine qua non of the development of economics, something of an utterly earthly making,
  • The mythology of the hero-king was strongly developed in that period, which Claire Lalouette summarizes into these basic characteristics: Beauty (a perfect face, on which it is “pleasant to look upon,” but also “beauty,” expressed in the Egyptian word nefer, not only means aesthetics, but contains moral qualities as well),
  • THE HERO AND HIS UNDEIFICATION: THE DREAM NEVER SLEEPS The concept of the hero is more important than it might appear. It may be the remote origin of Keynes’s animal spirits, or the desire to follow a kind of internal archetype that a given individual accepts as his own and that society values.
  • This internal animator of ours, our internal mover, this dream, never sleeps and it influences our behavior—including economic behavior—more than we want to realize.
  • manliness and strength,28 knowledge and intelligence,29 wisdom and understanding, vigilance and performance, fame and renown (fame which overcomes enemies because “a thousand men would not be able to stand firmly in his presence”);30 the hero is a good shepherd (who takes care of his subordinates), is a copper-clad rampart, the shield of the land, and the defender of heroes.
  • Each of us probably has a sort of “hero within”—a kind of internal role-model, template, an example that we (knowingly or not) follow. It is very important what kind of archetype it is, because its role is dominantly irrational and changes depending on time and the given civilization.
  • The oldest was the so-called Trickster—a fraudster; then the culture bearer—Rabbit; the musclebound hero called Redhorn; and finally the most developed form of hero: the Twins.
  • the Egyptian ruler, just as the Sumerian, was partly a god, or the son of a god.31
  • Jacob defrauds his father Isaac and steals his brother Esau’s blessing of the firstborn. Moses murders an Egyptian. King David seduces the wife of his military commander and then has him killed. In his old age, King Solomon turns to pagan idols, and so on.
  • Anthropology knows several archetypes of heroes. The Polish-born American anthropologist Paul Radin examined the myths of North American Indians and, for example, in his most influential book, The Trickster, he describes their four basic archetypes of heroes.
  • The Torah’s heroes (if that term can be used at all) frequently make mistakes and their mistakes are carefully recorded in the Bible—maybe precisely so that none of them could be deified.32
  • We do not have to go far for examples. Noah gets so drunk he becomes a disgrace; Lot lets his own daughters seduce him in a similar state of drunkenness. Abraham lies and (repeatedly) tries to sell his wife as a concubine.
  • the Hebrew heroes correspond most to the Tricksters, the Culture Bearers, and the Twins. The divine muscleman, that dominant symbol we think of when we say hero, is absent here.
  • To a certain extent it can be said that the Hebrews—and later Christianity—added another archetype, the archetype of the heroic Sufferer.35 Job
  • Undeification, however, does not mean a call to pillage or desecration; man was put here to take care of nature (see the story of the Garden of Eden or the symbolism of the naming of the animals). This protection and care of nature is also related to the idea of progress
  • For the heroes who moved our civilization to where it is today, the heroic archetypes of the cunning trickster, culture bearer, and sufferer are rather more appropriate.
  • the Old Testament strongly emphasizes the undeification of nature.37 Nature is God’s creation, which speaks of divinity but is not the domain of moody gods
  • This is very important for democratic capitalism, because the Jewish heroic archetype lays the groundwork much better for the development of the later phenomenon of the hero, which better suits life as we know it today. “The heroes laid down their arms and set about trading to become wealthy.”
  • in an Old Testament context, the pharaoh was a mere man (whom one could disagree with, and who could be resisted!).
  • RULERS ARE MERE MEN In a similar historical context, the Old Testament teachings carried out a similar desacralization of rulers, the so-called bearers of economic policy.
  • Ultimately the entire idea of a political ruler stood against the Lord’s will, which is explicitly presented in the Torah. The Lord unequivocally preferred the judge as the highest form of rule—an
  • The needs of future generations will have to be considered; after all humankind are the guardians of God’s world. Waste of natural resources, whether privately owned or nationally owned is forbidden.”39
  • Politics lost its character of divine infallibility, and political issues were subject to questioning. Economic policy could become a subject of examination.
  • 44 God first creates with the word and then on individual days He divides light from darkness, water from dry land, day from night, and so forth—and He gives order to things.45 The world is created orderly— it is wisely, reasonably put together. The way of the world is put together at least partially46 decipherably by any other wise and reasonable being who honors rational rules.
  • which for the methodology of science and economics is very important because disorder and chaos are difficult to examine scientifically.43 Faith in some kind of rational and logical order in a system (society, the economy) is a silent assumption of any (economic) examination.
  • THE PRAISE OF ORDER AND WISDOM: MAN AS A PERFECTER OF CREATION The created world has an order of sorts, an order recognizable by us as people,
  • From the very beginning, when God distances Himself from the entire idea, there is an anticipation that there is nothing holy, let alone divine, in politics. Rulers make mistakes, and it is possible to subject them to tough criticism—which frequently occurs indiscriminately through the prophets in the Old Testament.
  • Hebrew culture laid the foundations for the scientific examination of the world.
  • Examining the world is therefore an absolutely legitimate activity, and one that is even requested by God—it is a kind of participation in the Creator’s work.51 Man is called on to understand himself and his surroundings and to use his knowledge for good.
  • I was there when he set heavens in place, when he marked out the horizon on the face of the deep (…) Then I was the craftsman at his side.47
  • There are more urgings to gain wisdom in the Old Testament. “Wisdom calls aloud in the street (…): ‘How long will you simple ones love your simple ways?’”49 Or several chapters later: “Wisdom is supreme; therefore get wisdom. Though it cost all you have, get understanding.”50
  • examination is not forbidden. The fact that order can be grasped by human reason is another unspoken assumption that serves as a cornerstone of any scientific examination.
  • then, my sons, listen to me; blessed are those who keep my ways (…) Blessed is the man who listens to me, watching daily at my doors, waiting at my doorway. For whoever finds me finds life and receives favor from the Lord.
  • the rational examination of nature has its roots, surprisingly, in religion.
  • The Lord brought me forth as the first of his works, before his deeds of old. I was appointed from eternity, from the beginning, before the world began. When there were no oceans, I was given birth, when there were no springs abounding with water, before the mountains were settled in place,
  • The Book of Proverbs emphasizes specifically several times that it was wisdom that was present at the creation of the world. Wisdom personified calls out:
  • The last act, final stroke of the brush of creation, naming of the animals—this act is given to a human, it is not done by God, as one would expect. Man was given the task of completing the act of creation that the Lord began:
  • MAN AS A FINISHER OF CREATION The creation of the world, as it is explained in Jewish teachings, is described in the Book of Genesis. Here God (i) creates, (ii) separates, and (iii) names [my emphasis]:
  • Naming is a symbolic expression. In Jewish culture (and also in our culture to this day), the right to name meant sovereign rights and belonged, for example, to explorers (new places), inventors (new principles), or parents (children)—that is, to those who were there at the genesis, at the origin. This right was handed over by God to mankind.
  • The Naming itself (the capital N is appropriate) traditionally belongs to the crowning act of the Creator and represents a kind of grand finale of creation, the last move of the brush to complete the picture—a signature of the master.
  • Without naming, reality does not exist; it is created together with language. Wittgenstein tightly names this in his tractatus—the limits of our language are the limits of our world.53
  • He invented (fictitiously and completely abstractly!) a framework that was generally accepted and soon “made into” reality. Marx invented similarly; he created the notion of class exploitation. Through his idea, the perception of history and reality was changed for a large part of the world for nearly an entire century.
  • Reality is not a given; it is not passive. Perceiving reality and “facts” requires man’s active participation. It is man who must take the last step, an act (and we
  • How does this relate to economics? Reality itself, our “objective” world, is cocreated, man himself participates in the creation; creation, which is somewhat constantly being re-created.
  • Our scientific models put the finishing touches on reality, because (1) they interpret, (2) they give phenomena a name, (3) they enable us to classify the world and phenomena according to logical forms, and (4) through these models we de facto perceive reality.
  • When man finds a new linguistic framework or analytical model, or stops using the old one, he molds or remolds reality. Models are only in our heads; they are not “in objective reality.” In this sense, Newton invented (not merely discovered!) gravity.
  • A real-ization act on our part represents the creation of a construct, the imputation of sense and order (which is beautifully expressed by the biblical act of naming, or categorization, sorting, ordering).
  • Keynes enters into the history of economic thought from the same intellectual cadence; his greatest contribution to economics was precisely the resurrection of the imperceptible—for example in the form of animal spirits or uncertainty. The economist Piero Mini even ascribes Keynes’s doubting and rebellious approach to his almost Talmudic education.63
  • God connects man with the task of guarding and protecting the Garden of Eden, and thus man actually cocreates the cultural landscape. The Czech philosopher Zdeněk Neubauer also describes this: “Such is reality, and it is so deep that it willingly crystallizes into worlds. Therefore I profess that reality is a creation and not a place of occurrence for objectively given phenomena.”61
  • in this viewpoint it is possible to see how Jewish thought is mystical—it admits the role of the incomprehensible. Therefore, through its groundedness, Jewish thought indulges mystery and defends itself against a mechanistic-causal explanation of the world: “The Jewish way of thinking, according to Veblen, emphasizes the spiritual, the miraculous, the intangible.
  • The Jews believed the exact opposite. The world is created by a good God, and evil appears in it as a result of immoral human acts. Evil, therefore, is induced by man.66 History unwinds according to the morality of human acts.
  • What’s more, history seems to be based on morals; morals seem to be the key determining factors of history. For the Hebrews, history proceeds according to how morally its actors behave.
  • The Sumerians believed in dualism—good and evil deities exist, and the earth of people becomes their passive battlefield.
  • GOOD AND EVIL IN US: A MORAL EXPLANATION OF WELL-BEING We have seen that in the Epic of Gilgamesh, good and evil are not yet addressed systematically on a moral level.
  • This was not about moral-human evil, but rather a kind of natural evil. It is as if good and evil were not touched by morality at all. Evil simply occurred. Period.
  • the epic, good and evil are not envisaged morally—they are not the result of an (a)moral act. Evil was not associated with free moral action or individual will.
  • Hebrew thought, on the other hand, deals intensively with moral good and evil. A moral dimension touches the core of its stories.65
  • discrepancy between savings and investment, and others are convinced of the monetary essence
  • The entire history of the Jewish nation is interpreted and perceived in terms of morality. Morality has become, so to speak, a mover and shaker of Hebrew history.
  • sunspots. The Hebrews came up with the idea that morals were behind good and bad years, behind the economic cycle. But we would be getting ahead of ourselves. Pharaoh’s Dream: Joseph and the First Business Cycle To
  • It is the Pharaoh’s well-known dream of seven fat and seven lean cows, which he told to Joseph, the son of Jacob. Joseph interpreted the dream as a macroeconomic prediction of sorts: Seven years of abundance were to be followed by seven years of poverty, famine, and misery.
  • Self-Contradicting Prophecy Here, let’s make several observations on this: Through taxation74 on the level of one-fifth of a crop75 in good years to save the crop and then open granaries in bad years, the prophecy was de facto prevented (prosperous years were limited and hunger averted—through a predecessor of fiscal stabilization).
  • The Old Testament prophesies therefore were not any deterministic look into the future, but warnings and strategic variations of the possible, which demanded some kind of reaction. If the reaction was adequate, what was prophesied would frequently not occur at all.
  • This principle stands directly against the self-fulfilling prophecy,80 the well-known concept of social science. Certain prophecies become self-fulfilling when expressed (and believed) while others become self-contradicting prophecies when pronounced (and believed).
  • If the threat is anticipated, it is possible to totally or at least partially avoid it. Neither Joseph nor the pharaoh had the power to avoid bounty or crop failure (in this the dream interpretation was true and the appearance of the future mystical), but they avoided the impacts and implications of the prophecy (in this the interpretation of the dream was “false”)—famine did not ultimately occur in Egypt, and this was due to the application of reasonable and very intuitive economic policy.
  • Let us further note that the first “macroeconomic forecast” appears in a dream.
  • back to Torah: Later in this story we will notice that there is no reason offered as to why the cycle occurs (that will come later). Fat years will simply come, and then lean years after them.
  • Moral Explanation of a Business Cycle That is fundamentally different from later Hebrew interpretations, when the Jewish nation tries to offer reasons why the nation fared well or poorly. And those reasons are moral.
  • If you pay attention to these laws and are careful to follow them, then the Lord your God will keep his covenant of love with you, as he swore to your forefathers. He will love you and bless you and increase your numbers.
  • Only in recent times have some currents of economics again become aware of the importance of morals and trust in the form of measuring the quality of institutions, the level of justice, business ethics, corruption, and so forth, and examining their influence on the economy,
  • From today’s perspective, we can state that the moral dimension entirely disappeared from economic thought for a long time, especially due to the implementation of Mandeville’s concept of private vices that contrarily support the public welfare
  • Without being timid, we can say this is the first documented attempt to explain the economic cycle. The economic cycle, the explanation of which is to this day a mystery to economists, is explained morally in the Old Testament.
  • But how do we consolidate these two conflicting interpretations of the economic cycle: Can ethics be responsible for it or not? Can we influence reality around us through our acts?
  • it is not within the scope of this book to answer that question; justice has been done to the question if it manages to sketch out the main contours of possible searches for answers.
  • THE ECONOMICS OF GOOD AND EVIL: DOES GOOD PAY OFF? This is probably the most difficult moral problem we could ask.
  • Kant, the most important modern thinker in the area of ethics, answers on the contrary that if we carry out a “moral” act on the basis of economic calculus (therefore we carry out an hedonistic consideration; see below) in the expectation of later recompense, its morality is lost. Recompense, according to the strict Kant, annuls ethics.
  • Inquiring about the economics of good and evil, however, is not that easy. Where would Kant’s “moral dimension of ethics” go if ethics paid? If we do good for profit, the question of ethics becomes a mere question of rationality.
  • Job’s friends try to show that he must have sinned in some way and, in doing so, deserved God’s punishment. They are absolutely unable to imagine a situation in which Job, as a righteous man, would suffer without (moral) cause. Nevertheless, Job insists that he deserves no punishment because he has committed no offense: “God has wronged me and drawn his net around me.”94
  • But Job remains righteous, even though it does not pay to do so: Though he slay me, yet will I hope in him.95 And till I die, I will not deny my integrity I will maintain my righteousness and never let go of it; my conscience will not reproach me as long as I live.96
  • He remains righteous, even if his only reward is death. What economic advantage could he have from that?
  • morals cannot be considered in the economic dimension of productivity and calculus. The role of the Hebrews was to do good, whether it paid off or not. If good (outgoing) is rewarded by incoming goodness, it is a bonus,99 not a reason to do outgoing good. Good and reward do not correlate to each other.
  • This reasoning takes on a dimension of its own in the Old Testament. Good (incoming) has already happened to us. We must do good (outgoing) out of gratitude for the good (incoming) shown to us in the past.
  • So why do good? After all, suffering is the fate of many biblical figures. The answer can only be: For good itself. Good has the power to be its own reward. In this sense, goodness gets its reward, which may or may not take on a material dimension.
  • the Hebrews offered an interesting compromise between the teachings of the Stoics and Epicureans. We will go into it in detail later, so only briefly
  • constraint. It calls for bounded optimalization (with limits). A kind of symbiosis existed between the legitimate search for one’s own utility (or enjoyment of life) and maintaining rules, which are not negotiable and which are not subject to optimalization.
  • In other words, clear (exogenously given) rules exist that must be observed and cannot be contravened. But within these borders it is absolutely possible, and even recommended, to increase utility.
  • the mining of enjoyment must not come at the expense of exogenously given rules. “Judaism comes therefore to train or educate the unbounded desire … for wealth, so that market activities and patterns of consumption operate within a God-given morality.”102
  • The Epicureans acted with the goal of maximizing utility without regard for rules (rules developed endogenously, from within the system, computed from that which increased utility—this was one of the main trumps of the Epicurean school; they did not need exogenously given norms, and argued that they could “calculate” ethics (what to do) for every given situation from the situation itself).
  • The Stoics could not seek their enjoyment—or, by another name, utility. They could not in any way look back on it, and in no way could they count on it. They could only live according to rules (the greatest weakness of this school was to defend where exogenously the given rules came from and whether they are universal) and take a indifferent stand to the results of their actions.
  • To Love the Law The Jews not only had to observe the law (perhaps the word covenant would be more appropriate), but they were to love it because it was good.
  • Their relationship to the law was not supposed to be one of duty,105 but one of gratitude, love. Hebrews were to do good (outgoing), because goodness (incoming) has already been done to them.
  • This is in stark contrast with today’s legal system, where, naturally, no mention of love or gratefulness exists. But God expects a full internalization of the commandments and their fulfillment with love, not as much duty. By no means was this on the basis of the cost-benefit analyses so widespread in economics today, which determines when it pays to break the law and when not to (calculated on the basis of probability of being caught and the amount of punishment vis-à-vis the possible gain).
  • And now, O Israel, what does the Lord your God ask of you but to fear the Lord your God, to walk in all his ways, to love him, to serve the Lord your God with all your heart and with all your soul, and to observe the Lord’s commands and decrees that I am giving you today for your own good? To the Lord your God belong the heavens, even the highest heavens, the earth and everything in it. Yet the Lord set his affection on your forefathers and loved them….
  • the principle of doing good (outgoing) on the basis of a priori demonstrated good (incoming) was also taken over by the New Testament. Atonement itself is based on an a priori principle; all our acts are preceded by good.
  • The Hebrews, originally a nomadic tribe, preferred to be unrestrained and grew up in constant freedom of motion.
  • Human laws, if they are in conflict with the responsibilities given by God, are subordinate to personal responsibility, and a Jew cannot simply join the majority, even if it is legally allowed. Ethics, the concept of good, is therefore always superior to all local laws, rules, and customs:
  • THE SHACKLES OF THE CITY Owing to the Hebrew’s liberation from Egyptian slavery, freedom and responsibility become the key values of Jewish thought.
  • Laws given by God are binding for Jews, and God is the absolute source of all values,
  • The Hebrew ideal is represented by the paradise of the Garden of Eden, not a city.116 The despised city civilization or the tendency to see in it a sinful and shackling way of life appears in glimpses and allusions in many places in the Old Testament.
  • The nomadic Jewish ethos is frequently derived from Abraham, who left the Chaldean city of Ur on the basis of a command:
  • In addition, they were aware of a thin two-way line between owner and owned. We own material assets, but—to a certain extent—they own us and tie us down. Once we become used to a certain material
  • This way of life had understandably immense economic impacts. First, such a society lived in much more connected relationships, where there was no doubt that everyone mutually depended on each other. Second, their frequent wanderings meant the inability to own more than they could carry; the gathering up of material assets did not have great weight—precisely because the physical weight (mass) of things was tied to one place.
  • One of Moses’s greatest deeds was that he managed to explain to his nation once and for all that it is better to remain hungry and liberated than to be a slave with food “at no cost.”
  • SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM
  • regulations is developed in the Old Testament, one we hardly find in any other nation of the time. In Hebrew teachings, aside from individual utility, indications of the concept of maximalizing utility societywide appear for the first time as embodied in the Talmudic principle of Kofin al midat S´dom, which can be translated as “one is compelled not to act in the manner of Sodom” and to take care of the weaker members of society.
  • In a jubilee year, debts were to be forgiven,125 and Israelites who fell into slavery due to their indebtedness were to be set free.126
  • Such provisions can be seen as the antimonopoly and social measures of the time. The economic system even then had a clear tendency to converge toward asset concentration, and therefore power as well. It would appear that these provisions were supposed to prevent this process
  • Land at the time could be “sold,” and it was not sale, but rent. The price (rent) of real estate depended on how long there was until a forgiveness year. It was about the awareness that we may work the land, but in the last instance we are merely “aliens and strangers,” who have the land only rented to us for a fixed time. All land and riches came from the Lord.
  • These provisions express a conviction that freedom and inheritance should not be permanently taken away from any Israelite. Last but not least, this system reminds us that no ownership lasts forever and that the fields we plow are not ours but the Lord’s.
  • Glean Another social provision was the right to glean, which in Old Testament times ensured at least basic sustenance for the poorest. Anyone who owned a field had the responsibility not to harvest it to the last grain but to leave the remains in the field for the poor.
  • Tithes and Early Social Net Every Israelite also had the responsibility of levying a tithe from their entire crop. They had to be aware from whom all ownership comes and, by doing so, express their thanks.
  • “Since the community has an obligation to provide food, shelter, and basic economic goods for the needy, it has a moral right and duty to tax its members for this purpose. In line with this duty, it may have to regulate markets, prices and competition, to protect the interests of its weakest members.”135
  • In Judaism, charity is not perceived as a sign of goodness; it is more of a responsibility. Such a society then has the right to regulate its economy in such a way that the responsibility of charity is carried out to its satisfaction.
  • With a number of responsibilities, however, comes the difficulty of getting them into practice. Their fulfillment, then, in cases when it can be done, takes place gradually “in layers.” Charitable activities are classified in the Talmud according to several target groups with various priorities, classified according to, it could be said, rules of subsidiarity.
  • Do not mistreat an alien or oppress him, for you were aliens in Egypt.140 As one can see, aside from widows and orphans, the Old Testament also includes immigrants in its area of social protection.141 The Israelites had to have the same rules apply for them as for themselves—they could not discriminate on the basis of their origin.
  • ABSTRACT MONEY, FORBIDDEN INTEREST, AND OUR DEBT AGE If it appears to us that today’s era is based on money and debt, and our time will be written into history as the “Debt age,” then it will certainly be interesting to follow how this development occurred.
  • Money is a social abstractum. It is a social agreement, an unwritten contract.
  • The first money came in the form of clay tablets from Mesopotamia, on which debts were written. These debts were transferable, so the debts became currency. In the end, “It is no coincidence that in English the root of ‘credit’ is ‘credo,’ the Latin for ‘I believe.’”
  • To a certain extent it could be said that credit, or trust, was the first currency. It can materialize, it can be embodied in coins, but what is certain is that “money is not metal,” even the rarest metal, “it is trust inscribed,”
  • Inseparably, with the original credit (money) goes interest. For the Hebrews, the problem of interest was a social issue: “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.”
  • there were also clearly set rules setting how far one could go in setting guarantees and the nonpayment of debts. No one should become indebted to the extent that they could lose the source of their livelihood:
  • In the end, the term “bank” comes from the Italian banci, or the benches that Jewish lenders sat on.157
  • Money is playing not only its classical roles (as a means of exchange, a holder of value, etc.) but also a much greater, stronger role: It can stimulate, drive (or slow down) the whole economy. Money plays a national economic role.
  • In the course of history, however, the role of loans changed, and the rich borrowed especially for investment purposes,
  • Today the position and significance of money and debt has gone so far and reached such a dominant position in society that operating with debts (fiscal policy) or interest or money supply (monetary policy) means that these can, to a certain extent, direct (or at least strongly influence) the whole economy and society.
  • In such a case a ban on interest did not have great ethical significance. Thomas Aquinas, a medieval scholar (1225-1274), also considers similarly; in his time, the strict ban on lending with usurious interest was loosened, possibly due to him.
  • As a form of energy, money can travel in three dimensions, vertically (those who have capital lend to those who do not) and horizontally (speed and freedom in horizontal or geographic motion has become the by-product—or driving force?—of globalization). But money (as opposed to people) can also travel through time.
  • money is something like energy that can travel through time. And it is a very useful energy, but at the same time very dangerous as well. Wherever
  • Aristotle condemned interest162 not only from a moral standpoint, but also for metaphysical reasons. Thomas Aquinas shared the same fear of interest and he too argued that time does not belong to us, and that is why we must not require interest.
  • MONEY AS ENERGY: TIME TRAVEL AND GROSS DEBT PRODUCT (GDP)
  • Due to this characteristic, we can energy-strip the future to the benefit of the present. Debt can transfer energy from the future to the present.163 On the other hand, saving can accumulate energy from the past and send it to the present.
  • labor was not considered degrading in the Old Testament. On the contrary, the subjugation of nature is even a mission from God that originally belonged to man’s very first blessings.
  • LABOR AND REST: THE SABBATH ECONOMY
  • The Jews as well as Aristotle behaved very guardedly toward loans. The issue of interest/usury became one of the first economic debates. Without having an inkling of the future role of economic policy (fiscal and monetary), the ancient Hebrews may have unwittingly felt that they were discovering in interest a very powerful weapon, one that can be a good servant, but (literally) an enslaving master as well.
  • It’s something like a dam. When we build one, we are preventing periods of drought and flooding in the valley; we are limiting nature’s whims and, to a large extent, avoiding its incalculable cycles. Using dams, we can regulate the flow of water to nearly a constant. With it we tame the river (and we can also gain
  • But if we do not regulate the water wisely, it may happen that we would overfill the dam and it would break. For the cities lying in the valley, their end would be worse than if a dam were never there.
  • If man lived in harmony with nature before, now, after the fall, he must fight; nature stands against him and he against it and the animals. From the Garden we have moved unto a (battle)field.
  • Only after man’s fall does labor turn into a curse.168 It could even be said that this is actually the only curse, the curse of the unpleasantness of labor, that the Lord places on Adam.
  • Both Plato and Aristotle consider labor to be necessary for survival, but that only the lower classes should devote themselves to it so that the elites would not have to be bothered with it and so that they could devote themselves to “purely spiritual matters—art, philosophy, and politics.”
  • Work is also not only a source of pleasure but a social standing; It is considered an honor. “Do you see a man skilled in his work? He will serve before kings.”170 None of the surrounding cultures appreciate work as much. The idea of the dignity of labor is unique in the Hebrew tradition.
  • Hebrew thinking is characterized by a strict separation of the sacred from the profane. In life, there are simply areas that are holy, and in which it is not allowed to economize, rationalize, or maximize efficiency.
  • good example is the commandment on the Sabbath. No one at all could work on this day, not even the ones who were subordinate to an observant Jew:
  • the message of the commandment on Saturday communicated that people were not primarily created for labor.
  • Paradoxically, it is precisely this commandment out of all ten that is probably the most violated today.
  • Aristotle even considers labor to be “a corrupted waste of time which only burdens people’s path to true honour.”
  • we have days when we must not toil connected (at least lexically) with the word meaning emptiness: the English term “vacation” (or emptying), as with the French term, les vacances, or German die Freizeit, meaning open time, free time, but also…
  • Translated into economic language: The meaning of utility is not to increase it permanently but to rest among existing gains. Why do we learn how to constantly increase gains but not how to…
  • This dimension has disappeared from today’s economics. Economic effort has no goal at which it would be possible to rest. Today we only know growth for growth’s sake, and if our company or country prospers, that does not…
  • Six-sevenths of time either be dissatisfied and reshape the world into your own image, man, but one-seventh you will rest and not change the creation. On the seventh day, enjoy creation and enjoy the work of your hands.
  • the purpose of creation was not just creating but that it had an end, a goal. The process was just a process, not a purpose. The whole of Being was created so…
  • Saturday was not established to increase efficiency. It was a real ontological break that followed the example of the Lord’s seventh day of creation. Just as the Lord did not rest due to tiredness or to regenerate strength; but because He was done. He was done with His work, so that He could enjoy it, to cherish in His creation.
  • If we believe in rest at all today, it is for different reasons. It is the rest of the exhausted machine, the rest of the weak, and the rest of those who can’t handle the tempo. It’s no wonder that the word “rest…
  • Related to this, we have studied the first mention of a business cycle with the pharaoh’s dream as well as seen a first attempt (that we may call…
  • We have tried to show that the quest for a heaven on Earth (similar to the Jewish one) has, in its desacralized form, actually also been the same quest for many of the…
  • We have also seen that the Hebrews tried to explain the business cycle with morality and ethics. For the Hebrews,…
  • ancient Greek economic ethos, we will examine two extreme approaches to laws and rules. While the Stoics considered laws to be absolutely valid, and utility had infinitesimal meaning in their philosophy, the Epicureans, at least in the usual historical explanation, placed utility and pleasure in first place—rules were to be made based on the principle of utility.
  • CONCLUSION: BETWEEN UTILITY AND PRINCIPLE The influence of Jewish thought on the development of market democracy cannot be overestimated. The key heritage for us was the lack of ascetic perception of the world, respect to law and private…
  • We have tried to show how the Torah desacralized three important areas in our lives: the earthly ruler, nature,…
  • What is the relationship between the good and evil that we do (outgoing) and the utility of disutility that we (expect to) get as a reward (incoming)? We have seen…
  • The Hebrews never despised material wealth; on contrary, the Jewish faith puts great responsibility on property management. Also the idea of progress and the linear perception of time gives our (economic)…
  • the Hebrews managed to find something of a happy compromise between both of these principles.
  • will not be able to completely understand the development of the modern notion of economics without understanding the disputes between the Epicureans and the Stoics;
  • poets actually went even further, and with their speech they shaped and established reality and truth. Honor, adventure, great deeds, and the acclaim connected with them played an important role in the establishment of the true, the real.
  • those who are famous will be remembered by people. They become more real, part of the story, and they start to be “realized,” “made real” in the lives of other people. That which is stored in memory is real; that which is forgotten is as if it never existed.
  • Today’s scientific truth is founded on the notion of exact and objective facts, but poetic truth stands on an interior (emotional) consonance with the story or poem. “It is not addressed first to the brain … [myth] talks directly to the feeling system.”
  • “epic and tragic poets were widely assumed to be the central ethical thinkers and teachers of Greece; nobody thought of their work as less serious, less aimed at truth, than the speculative prose treatises of historians and philosophers.”5 Truth and reality were hidden in speech, stories, and narration.
  • Ancient philosophy, just as science would later, tries to find constancy, constants, quantities, inalterabilities. Science seeks (creates?) order and neglects everything else as much as it can. In their own experiences, everyone knows that life is not like that,
  • Just as scientists do today, artists drew images of the world that were representative, and therefore symbolic, picturelike, and simplifying (but thus also misleading), just like scientific models, which often do not strive to be “realistic.”
  • general? In the end, poetry could be more sensitive to the truth than the philosophical method or, later, the scientific method. “Tragic poems, in virtue of their subject matter and their social function, are likely to confront and explore problems about human beings and luck that a philosophical text might be able to omit or avoid.”8
Javier E

How will humanity endure the climate crisis? I asked an acclaimed sci-fi writer | Danie... - 0 views

www.theguardian.com/...te-crisis-kim-stanley-robinson

climate change crisis response politics international humanity science technology writer cli-fi

shared by Javier E on 11 Dec 21 - No Cached
  • To really grasp the present, we need to imagine the future – then look back from it to better see the now. The angry climate kids do this naturally. The rest of us need to read good science fiction. A great place to start is Kim Stanley Robinson.
  • read 11 of his books, culminating in his instant classic The Ministry for the Future, which imagines several decades of climate politics starting this decade.
  • The first lesson of his books is obvious: climate is the story.
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  • What Ministry and other Robinson books do is make us slow down the apocalyptic highlight reel, letting the story play in human time for years, decades, centuries.
  • he wants leftists to set aside their differences, and put a “time stamp on [their] political view” that recognizes how urgent things are. Looking back from 2050 leaves little room for abstract idealism. Progressives need to form “a united front,” he told me. “It’s an all-hands-on-deck situation; species are going extinct and biomes are dying. The catastrophes are here and now, so we need to make political coalitions.”
  • he does want leftists – and everyone else – to take the climate emergency more seriously. He thinks every big decision, every technological option, every political opportunity, warrants climate-oriented scientific scrutiny. Global justice demands nothing less.
  • He wants to legitimize geoengineering, even in forms as radical as blasting limestone dust into the atmosphere for a few years to temporarily dim the heat of the sun
  • Robinson believes that once progressives internalize the insight that the economy is a social construct just like anything else, they can determine – based on the contemporary balance of political forces, ecological needs, and available tools – the most efficient methods for bringing carbon and capital into closer alignment.
  • We live in a world where capitalist states and giant companies largely control science.
  • Yes, we need to consider technologies with an open mind. That includes a frank assessment of how the interests of the powerful will shape how technologies develop
  • Robinson’s imagined future suggests a short-term solution that fits his dreams of a democratic, scientific politics: planning, of both the economy and planet.
  • it’s borrowed from Robinson’s reading of ecological economics. That field’s premise is that the economy is embedded in nature – that its fundamental rules aren’t supply and demand, but the laws of physics, chemistry, biology.
  • The upshot of Robinson’s science fiction is understanding that grand ecologies and human economies are always interdependent.
  • Robinson seems to be urging all of us to treat every possible technological intervention – from expanding nuclear energy, to pumping meltwater out from under glaciers, to dumping iron filings in the ocean – from a strictly scientific perspective: reject dogma, evaluate the evidence, ignore the profit motive.
  • Robinson’s elegant solution, as rendered in Ministry, is carbon quantitative easing. The idea is that central banks invent a new currency; to earn the carbon coins, institutions must show that they’re sucking excess carbon down from the sky. In his novel, this happens thanks to a series of meetings between United Nations technocrats and central bankers. But the technocrats only win the arguments because there’s enough rage, protest and organizing in the streets to force the bankers’ hand.
  • Seen from Mars, then, the problem of 21st-century climate economics is to sync public and private systems of capital with the ecological system of carbon.
  • Success will snowball; we’ll democratically plan more and more of the eco-economy.
  • Robinson thus gets that climate politics are fundamentally the politics of investment – extremely big investments. As he put it to me, carbon quantitative easing isn’t the “silver bullet solution,” just one of several green investment mechanisms we need to experiment with.
  • Robinson shares the great anarchist dream. “Everybody on the planet has an equal amount of power, and comfort, and wealth,” he said. “It’s an obvious goal” but there’s no shortcut.
  • In his political economy, like his imagined settling of Mars, Robinson tries to think like a bench scientist – an experimentalist, wary of unifying theories, eager for many groups to try many things.
  • there’s something liberating about Robinson’s commitment to the scientific method: reasonable people can shed their prejudices, consider all the options and act strategically.
  • The years ahead will be brutal. In Ministry, tens of millions of people die in disasters – and that’s in a scenario that Robinson portrays as relatively optimistic
  • when things get that bad, people take up arms. In Ministry’s imagined future, the rise of weaponized drones allows shadowy environmentalists to attack and kill fossil capitalists. Many – including myself – have used the phrase “eco-terrorism” to describe that violence. Robinson pushed back when we talked. “What if you call that resistance to capitalism realism?” he asked. “What if you call that, well, ‘Freedom fighters’?”
  • Robinson insists that he doesn’t condone the violence depicted in his book; he simply can’t imagine a realistic account of 21st century climate politics in which it doesn’t occur.
  • Malm writes that it’s shocking how little political violence there has been around climate change so far, given how brutally the harms will be felt in communities of color, especially in the global south, who bear no responsibility for the cataclysm, and where political violence has been historically effective in anticolonial struggles.
  • In Ministry, there’s a lot of violence, but mostly off-stage. We see enough to appreciate Robinson’s consistent vision of most people as basically thoughtful: the armed struggle is vicious, but its leaders are reasonable, strategic.
  • the implications are straightforward: there will be escalating violence, escalating state repression and increasing political instability. We must plan for that too.
  • maybe that’s the tension that is Ministry’s greatest lesson for climate politics today. No document that could win consensus at a UN climate summit will be anywhere near enough to prevent catastrophic warming. We can only keep up with history, and clearly see what needs to be done, by tearing our minds out of the present and imagining more radical future vantage points
  • If millions of people around the world can do that, in an increasingly violent era of climate disasters, those people could generate enough good projects to add up to something like a rational plan – and buy us enough time to stabilize the climate, while wresting power from the 1%.
  • Robinson’s optimistic view is that human nature is fundamentally thoughtful, and that it will save us – that the social process of arguing and politicking, with minds as open as we can manage, is a project older than capitalism, and one that will eventually outlive it
  • It’s a perspective worth thinking about – so long as we’re also organizing.
  • Daniel Aldana Cohen is assistant professor of sociology at the University of California, Berkeley, where he directs the Socio-Spatial Climate Collaborative. He is the co-author of A Planet to Win: Why We Need a Green New Deal
Javier E

'Our minds can be hijacked': the tech insiders who fear a smartphone dystopia | Technol... - 0 views

www.theguardian.com/...iction-silicon-valley-dystopia

dystopia distraction attention fb google manipulation advertising addiction psychology technology social media brain science

shared by Javier E on 06 Oct 17 - No Cached
  • Rosenstein belongs to a small but growing band of Silicon Valley heretics who complain about the rise of the so-called “attention economy”: an internet shaped around the demands of an advertising economy.
  • “It is very common,” Rosenstein says, “for humans to develop things with the best of intentions and for them to have unintended, negative consequences.”
  • most concerned about the psychological effects on people who, research shows, touch, swipe or tap their phone 2,617 times a day.
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  • There is growing concern that as well as addicting users, technology is contributing toward so-called “continuous partial attention”, severely limiting people’s ability to focus, and possibly lowering IQ. One recent study showed that the mere presence of smartphones damages cognitive capacity – even when the device is turned off. “Everyone is distracted,” Rosenstein says. “All of the time.”
  • Drawing a straight line between addiction to social media and political earthquakes like Brexit and the rise of Donald Trump, they contend that digital forces have completely upended the political system and, left unchecked, could even render democracy as we know it obsolete.
  • Without irony, Eyal finished his talk with some personal tips for resisting the lure of technology. He told his audience he uses a Chrome extension, called DF YouTube, “which scrubs out a lot of those external triggers” he writes about in his book, and recommended an app called Pocket Points that “rewards you for staying off your phone when you need to focus”.
  • “One reason I think it is particularly important for us to talk about this now is that we may be the last generation that can remember life before,” Rosenstein says. It may or may not be relevant that Rosenstein, Pearlman and most of the tech insiders questioning today’s attention economy are in their 30s, members of the last generation that can remember a world in which telephones were plugged into walls.
  • One morning in April this year, designers, programmers and tech entrepreneurs from across the world gathered at a conference centre on the shore of the San Francisco Bay. They had each paid up to $1,700 to learn how to manipulate people into habitual use of their products, on a course curated by conference organiser Nir Eyal.
  • Eyal, 39, the author of Hooked: How to Build Habit-Forming Products, has spent several years consulting for the tech industry, teaching techniques he developed by closely studying how the Silicon Valley giants operate.
  • “The technologies we use have turned into compulsions, if not full-fledged addictions,” Eyal writes. “It’s the impulse to check a message notification. It’s the pull to visit YouTube, Facebook, or Twitter for just a few minutes, only to find yourself still tapping and scrolling an hour later.” None of this is an accident, he writes. It is all “just as their designers intended”
  • He explains the subtle psychological tricks that can be used to make people develop habits, such as varying the rewards people receive to create “a craving”, or exploiting negative emotions that can act as “triggers”. “Feelings of boredom, loneliness, frustration, confusion and indecisiveness often instigate a slight pain or irritation and prompt an almost instantaneous and often mindless action to quell the negative sensation,” Eyal writes.
  • The most seductive design, Harris explains, exploits the same psychological susceptibility that makes gambling so compulsive: variable rewards. When we tap those apps with red icons, we don’t know whether we’ll discover an interesting email, an avalanche of “likes”, or nothing at all. It is the possibility of disappointment that makes it so compulsive.
  • Finally, Eyal confided the lengths he goes to protect his own family. He has installed in his house an outlet timer connected to a router that cuts off access to the internet at a set time every day. “The idea is to remember that we are not powerless,” he said. “We are in control.
  • But are we? If the people who built these technologies are taking such radical steps to wean themselves free, can the rest of us reasonably be expected to exercise our free will?
  • Not according to Tristan Harris, a 33-year-old former Google employee turned vocal critic of the tech industry. “All of us are jacked into this system,” he says. “All of our minds can be hijacked. Our choices are not as free as we think they are.”
  • Harris, who has been branded “the closest thing Silicon Valley has to a conscience”, insists that billions of people have little choice over whether they use these now ubiquitous technologies, and are largely unaware of the invisible ways in which a small number of people in Silicon Valley are shaping their lives.
  • “I don’t know a more urgent problem than this,” Harris says. “It’s changing our democracy, and it’s changing our ability to have the conversations and relationships that we want with each other.” Harris went public – giving talks, writing papers, meeting lawmakers and campaigning for reform after three years struggling to effect change inside Google’s Mountain View headquarters.
  • He explored how LinkedIn exploits a need for social reciprocity to widen its network; how YouTube and Netflix autoplay videos and next episodes, depriving users of a choice about whether or not they want to keep watching; how Snapchat created its addictive Snapstreaks feature, encouraging near-constant communication between its mostly teenage users.
  • The techniques these companies use are not always generic: they can be algorithmically tailored to each person. An internal Facebook report leaked this year, for example, revealed that the company can identify when teens feel “insecure”, “worthless” and “need a confidence boost”. Such granular information, Harris adds, is “a perfect model of what buttons you can push in a particular person”.
  • Tech companies can exploit such vulnerabilities to keep people hooked; manipulating, for example, when people receive “likes” for their posts, ensuring they arrive when an individual is likely to feel vulnerable, or in need of approval, or maybe just bored. And the very same techniques can be sold to the highest bidder. “There’s no ethics,” he says. A company paying Facebook to use its levers of persuasion could be a car business targeting tailored advertisements to different types of users who want a new vehicle. Or it could be a Moscow-based troll farm seeking to turn voters in a swing county in Wisconsin.
  • It was Rosenstein’s colleague, Leah Pearlman, then a product manager at Facebook and on the team that created the Facebook “like”, who announced the feature in a 2009 blogpost. Now 35 and an illustrator, Pearlman confirmed via email that she, too, has grown disaffected with Facebook “likes” and other addictive feedback loops. She has installed a web browser plug-in to eradicate her Facebook news feed, and hired a social media manager to monitor her Facebook page so that she doesn’t have to.
  • Harris believes that tech companies never deliberately set out to make their products addictive. They were responding to the incentives of an advertising economy, experimenting with techniques that might capture people’s attention, even stumbling across highly effective design by accident.
  • It’s this that explains how the pull-to-refresh mechanism, whereby users swipe down, pause and wait to see what content appears, rapidly became one of the most addictive and ubiquitous design features in modern technology. “Each time you’re swiping down, it’s like a slot machine,” Harris says. “You don’t know what’s coming next. Sometimes it’s a beautiful photo. Sometimes it’s just an ad.”
  • The reality TV star’s campaign, he said, had heralded a watershed in which “the new, digitally supercharged dynamics of the attention economy have finally crossed a threshold and become manifest in the political realm”.
  • “Smartphones are useful tools,” he says. “But they’re addictive. Pull-to-refresh is addictive. Twitter is addictive. These are not good things. When I was working on them, it was not something I was mature enough to think about. I’m not saying I’m mature now, but I’m a little bit more mature, and I regret the downsides.”
  • All of it, he says, is reward-based behaviour that activates the brain’s dopamine pathways. He sometimes finds himself clicking on the red icons beside his apps “to make them go away”, but is conflicted about the ethics of exploiting people’s psychological vulnerabilities. “It is not inherently evil to bring people back to your product,” he says. “It’s capitalism.”
  • He identifies the advent of the smartphone as a turning point, raising the stakes in an arms race for people’s attention. “Facebook and Google assert with merit that they are giving users what they want,” McNamee says. “The same can be said about tobacco companies and drug dealers.”
  • McNamee chooses his words carefully. “The people who run Facebook and Google are good people, whose well-intentioned strategies have led to horrific unintended consequences,” he says. “The problem is that there is nothing the companies can do to address the harm unless they abandon their current advertising models.”
  • But how can Google and Facebook be forced to abandon the business models that have transformed them into two of the most profitable companies on the planet?
  • McNamee believes the companies he invested in should be subjected to greater regulation, including new anti-monopoly rules. In Washington, there is growing appetite, on both sides of the political divide, to rein in Silicon Valley. But McNamee worries the behemoths he helped build may already be too big to curtail.
  • Rosenstein, the Facebook “like” co-creator, believes there may be a case for state regulation of “psychologically manipulative advertising”, saying the moral impetus is comparable to taking action against fossil fuel or tobacco companies. “If we only care about profit maximisation,” he says, “we will go rapidly into dystopia.”
  • James Williams does not believe talk of dystopia is far-fetched. The ex-Google strategist who built the metrics system for the company’s global search advertising business, he has had a front-row view of an industry he describes as the “largest, most standardised and most centralised form of attentional control in human history”.
  • It is a journey that has led him to question whether democracy can survive the new technological age.
  • He says his epiphany came a few years ago, when he noticed he was surrounded by technology that was inhibiting him from concentrating on the things he wanted to focus on. “It was that kind of individual, existential realisation: what’s going on?” he says. “Isn’t technology supposed to be doing the complete opposite of this?
  • That discomfort was compounded during a moment at work, when he glanced at one of Google’s dashboards, a multicoloured display showing how much of people’s attention the company had commandeered for advertisers. “I realised: this is literally a million people that we’ve sort of nudged or persuaded to do this thing that they weren’t going to otherwise do,” he recalls.
  • Williams and Harris left Google around the same time, and co-founded an advocacy group, Time Well Spent, that seeks to build public momentum for a change in the way big tech companies think about design. Williams finds it hard to comprehend why this issue is not “on the front page of every newspaper every day.
  • “Eighty-seven percent of people wake up and go to sleep with their smartphones,” he says. The entire world now has a new prism through which to understand politics, and Williams worries the consequences are profound.
  • g. “The attention economy incentivises the design of technologies that grab our attention,” he says. “In so doing, it privileges our impulses over our intentions.”
  • That means privileging what is sensational over what is nuanced, appealing to emotion, anger and outrage. The news media is increasingly working in service to tech companies, Williams adds, and must play by the rules of the attention economy to “sensationalise, bait and entertain in order to survive”.
  • It is not just shady or bad actors who were exploiting the internet to change public opinion. The attention economy itself is set up to promote a phenomenon like Trump, who is masterly at grabbing and retaining the attention of supporters and critics alike, often by exploiting or creating outrage.
  • All of which has left Brichter, who has put his design work on the backburner while he focuses on building a house in New Jersey, questioning his legacy. “I’ve spent many hours and weeks and months and years thinking about whether anything I’ve done has made a net positive impact on society or humanity at all,” he says. He has blocked certain websites, turned off push notifications, restricted his use of the Telegram app to message only with his wife and two close friends, and tried to wean himself off Twitter. “I still waste time on it,” he confesses, “just reading stupid news I already know about.” He charges his phone in the kitchen, plugging it in at 7pm and not touching it until the next morning.
  • He stresses these dynamics are by no means isolated to the political right: they also play a role, he believes, in the unexpected popularity of leftwing politicians such as Bernie Sanders and Jeremy Corbyn, and the frequent outbreaks of internet outrage over issues that ignite fury among progressives.
  • All of which, Williams says, is not only distorting the way we view politics but, over time, may be changing the way we think, making us less rational and more impulsive. “We’ve habituated ourselves into a perpetual cognitive style of outrage, by internalising the dynamics of the medium,” he says.
  • It was another English science fiction writer, Aldous Huxley, who provided the more prescient observation when he warned that Orwellian-style coercion was less of a threat to democracy than the more subtle power of psychological manipulation, and “man’s almost infinite appetite for distractions”.
  • If the attention economy erodes our ability to remember, to reason, to make decisions for ourselves – faculties that are essential to self-governance – what hope is there for democracy itself?
  • “The dynamics of the attention economy are structurally set up to undermine the human will,” he says. “If politics is an expression of our human will, on individual and collective levels, then the attention economy is directly undermining the assumptions that democracy rests on.”
Javier E

Beyond Billboards - The Daily Dish | By Andrew Sullivan - 0 views

andrewsullivan.theatlantic.com/...beyond-billboards.html

Christianity Christmas myth sin

shared by Javier E on 12 Dec 10 - No Cached
  • The Atlantic Home todaysDate();Sunday, December 12, 2010Sunday, December 12, 2010 Go Follow the Atlantic » atlanticPrintlayoutnavigation()Politics Presented ByBack to the Gold Standard? Joshua GreenSenate Dems Lose Vote on 'Don't Ask' RepealMegan Scully & Dan FriedmanA Primary Challenge to Obama? Marc Ambinder Business Presented byif (typeof window.dartOrd == 'undefined') {window.dartOrd = ('000000000' + Math.ceil(Math.random()*1000000000).toString()).slice(-9);}jsProperties = 'TheAtlanticOnline/channel_business;pos=navlogo;sz=88x31,215x64;tile=1';document.write('');if( $(".adNavlogo").html().search("grey.gif") != -1 ){$(".adNavlogo").hide();}Will the Economy Get Jobs for Christmas?Daniel Indiviglio27 Key Facts About US ExportsDerek ThompsonThe Last StimulusDerek Thompson Culture Presented ByThe 10 Biggest Sports Stories of 2010Eleanor Barkhorn and Kevin Fallon al
  • at the force behind all that exists actually intervened in the consciousness of humankind in the form of a man so saturated in godliness that merely being near him healed people of the weight of the world's sins.
Javier E

Chick-fil-A is Bad For Your Political Health | Patrol - A review of religion and the mo... - 0 views

www.patrolmag.com/...easons-to-eat-more-chick-fil-a

liberalism politics economics boycott responsibility

shared by Javier E on 01 Aug 12 - No Cached
  • The premise is that politics and economics are separate realms, and we are “creating a culture” of division by dragging politics into such things as economic transactions. One could hardly better encapsulate the reality we live under, where economics have completely replaced politics. That’s pretty much the definition of classical liberalism: true politics, where human values are disputed, are expected to be sublimated by economic transactions.
  • The winner is the corporation, which can now reap the profits of a society where no human value is allowed to be more important than a business deal. (If you question that orthodoxy, you’re likely to be labeled a “radical” or a “partisan,” or better yet, just “too political.”) This ideology owes its entire existence to the need for capitalists to keep human values out of the way of the market. Above all, it must keep politics a dirty word, because people who know what politics are and how to use them can cause trouble for capitalists very quickly.
  • our commercial and our political lives are already completely intermeshed, because under the current regime we basically only have commercial lives. The only political power to be had in the United States is money, and even if you don’t have enough to make a corporation hurt, how you consume is one of the few expressions of political will open to the average citizen. They may not have enough money to shake the economy, and may not even when pooled with a large group of like-minded people. But a visceral awareness that money is politics is an excellent first step toward the average person realizing his or her political agency and taking responsibility for it.
  • ...2 more annotations...
  • Even if the corporatization of our society is so complete that it is objectively impossible to avoid giving money to entities that are at that very moment working to undermine our political freedoms, every religious and ethically-minded institution should be urging those under its influence to be aware and resist wherever possible.
  • In sum, you should absolutely be supporting corporations that put human values ahead of profit, and doing your best to keep your dollars away from ones that exploit workers and try to obstruct democracy, whether directly by stripping workers of their rights or indirectly by supporting the exclusionary social fantasies of religious reactionaries.
Javier E

Accelerationism: how a fringe philosophy predicted the future we live in | World news |... - 1 views

www.theguardian.com/...redicted-the-future-we-live-in

philosophy fringe acceleration psychology technology

shared by Javier E on 11 May 17 - No Cached
  • Roger Zelazny, published his third novel. In many ways, Lord of Light was of its time, shaggy with imported Hindu mythology and cosmic dialogue. Yet there were also glints of something more forward-looking and political.
  • accelerationism has gradually solidified from a fictional device into an actual intellectual movement: a new way of thinking about the contemporary world and its potential.
  • Accelerationists argue that technology, particularly computer technology, and capitalism, particularly the most aggressive, global variety, should be massively sped up and intensified – either because this is the best way forward for humanity, or because there is no alternative.
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  • Accelerationists favour automation. They favour the further merging of the digital and the human. They often favour the deregulation of business, and drastically scaled-back government. They believe that people should stop deluding themselves that economic and technological progress can be controlled.
  • Accelerationism, therefore, goes against conservatism, traditional socialism, social democracy, environmentalism, protectionism, populism, nationalism, localism and all the other ideologies that have sought to moderate or reverse the already hugely disruptive, seemingly runaway pace of change in the modern world
  • Robin Mackay and Armen Avanessian in their introduction to #Accelerate: The Accelerationist Reader, a sometimes baffling, sometimes exhilarating book, published in 2014, which remains the only proper guide to the movement in existence.
  • “We all live in an operating system set up by the accelerating triad of war, capitalism and emergent AI,” says Steve Goodman, a British accelerationist
  • A century ago, the writers and artists of the Italian futurist movement fell in love with the machines of the industrial era and their apparent ability to invigorate society. Many futurists followed this fascination into war-mongering and fascism.
  • One of the central figures of accelerationism is the British philosopher Nick Land, who taught at Warwick University in the 1990s
  • Land has published prolifically on the internet, not always under his own name, about the supposed obsolescence of western democracy; he has also written approvingly about “human biodiversity” and “capitalistic human sorting” – the pseudoscientific idea, currently popular on the far right, that different races “naturally” fare differently in the modern world; and about the supposedly inevitable “disintegration of the human species” when artificial intelligence improves sufficiently.
  • In our politically febrile times, the impatient, intemperate, possibly revolutionary ideas of accelerationism feel relevant, or at least intriguing, as never before. Noys says: “Accelerationists always seem to have an answer. If capitalism is going fast, they say it needs to go faster. If capitalism hits a bump in the road, and slows down” – as it has since the 2008 financial crisis – “they say it needs to be kickstarted.”
  • On alt-right blogs, Land in particular has become a name to conjure with. Commenters have excitedly noted the connections between some of his ideas and the thinking of both the libertarian Silicon Valley billionaire Peter Thiel and Trump’s iconoclastic strategist Steve Bannon.
  • “In Silicon Valley,” says Fred Turner, a leading historian of America’s digital industries, “accelerationism is part of a whole movement which is saying, we don’t need [conventional] politics any more, we can get rid of ‘left’ and ‘right’, if we just get technology right. Accelerationism also fits with how electronic devices are marketed – the promise that, finally, they will help us leave the material world, all the mess of the physical, far behind.”
  • In 1972, the philosopher Gilles Deleuze and the psychoanalyst Félix Guattari published Anti-Oedipus. It was a restless, sprawling, appealingly ambiguous book, which suggested that, rather than simply oppose capitalism, the left should acknowledge its ability to liberate as well as oppress people, and should seek to strengthen these anarchic tendencies, “to go still further … in the movement of the market … to ‘accelerate the process’”.
  • By the early 90s Land had distilled his reading, which included Deleuze and Guattari and Lyotard, into a set of ideas and a writing style that, to his students at least, were visionary and thrillingly dangerous. Land wrote in 1992 that capitalism had never been properly unleashed, but instead had always been held back by politics, “the last great sentimental indulgence of mankind”. He dismissed Europe as a sclerotic, increasingly marginal place, “the racial trash-can of Asia”. And he saw civilisation everywhere accelerating towards an apocalypse: “Disorder must increase... Any [human] organisation is ... a mere ... detour in the inexorable death-flow.”
  • With the internet becoming part of everyday life for the first time, and capitalism seemingly triumphant after the collapse of communism in 1989, a belief that the future would be almost entirely shaped by computers and globalisation – the accelerated “movement of the market” that Deleuze and Guattari had called for two decades earlier – spread across British and American academia and politics during the 90s. The Warwick accelerationists were in the vanguard.
  • In the US, confident, rainbow-coloured magazines such as Wired promoted what became known as “the Californian ideology”: the optimistic claim that human potential would be unlocked everywhere by digital technology. In Britain, this optimism influenced New Labour
  • The Warwick accelerationists saw themselves as participants, not traditional academic observers
  • The CCRU gang formed reading groups and set up conferences and journals. They squeezed into the narrow CCRU room in the philosophy department and gave each other impromptu seminars.
  • The main result of the CCRU’s frantic, promiscuous research was a conveyor belt of cryptic articles, crammed with invented terms, sometimes speculative to the point of being fiction.
  • At Warwick, however, the prophecies were darker. “One of our motives,” says Plant, “was precisely to undermine the cheery utopianism of the 90s, much of which seemed very conservative” – an old-fashioned male desire for salvation through gadgets, in her view.
  • K-punk was written by Mark Fisher, formerly of the CCRU. The blog retained some Warwick traits, such as quoting reverently from Deleuze and Guattari, but it gradually shed the CCRU’s aggressive rhetoric and pro-capitalist politics for a more forgiving, more left-leaning take on modernity. Fisher increasingly felt that capitalism was a disappointment to accelerationists, with its cautious, entrenched corporations and endless cycles of essentially the same products. But he was also impatient with the left, which he thought was ignoring new technology
  • lex Williams, co-wrote a Manifesto for an Accelerationist Politics. “Capitalism has begun to constrain the productive forces of technology,” they wrote. “[Our version of] accelerationism is the basic belief that these capacities can and should be let loose … repurposed towards common ends … towards an alternative modernity.”
  • What that “alternative modernity” might be was barely, but seductively, sketched out, with fleeting references to reduced working hours, to technology being used to reduce social conflict rather than exacerbate it, and to humanity moving “beyond the limitations of the earth and our own immediate bodily forms”. On politics and philosophy blogs from Britain to the US and Italy, the notion spread that Srnicek and Williams had founded a new political philosophy: “left accelerationism”.
  • Two years later, in 2015, they expanded the manifesto into a slightly more concrete book, Inventing the Future. It argued for an economy based as far as possible on automation, with the jobs, working hours and wages lost replaced by a universal basic income. The book attracted more attention than a speculative leftwing work had for years, with interest and praise from intellectually curious leftists
  • Even the thinking of the arch-accelerationist Nick Land, who is 55 now, may be slowing down. Since 2013, he has become a guru for the US-based far-right movement neoreaction, or NRx as it often calls itself. Neoreactionaries believe in the replacement of modern nation-states, democracy and government bureaucracies by authoritarian city states, which on neoreaction blogs sound as much like idealised medieval kingdoms as they do modern enclaves such as Singapore.
  • Land argues now that neoreaction, like Trump and Brexit, is something that accelerationists should support, in order to hasten the end of the status quo.
  • In 1970, the American writer Alvin Toffler, an exponent of accelerationism’s more playful intellectual cousin, futurology, published Future Shock, a book about the possibilities and dangers of new technology. Toffler predicted the imminent arrival of artificial intelligence, cryonics, cloning and robots working behind airline check-in desks
  • Land left Britain. He moved to Taiwan “early in the new millennium”, he told me, then to Shanghai “a couple of years later”. He still lives there now.
  • In a 2004 article for the Shanghai Star, an English-language paper, he described the modern Chinese fusion of Marxism and capitalism as “the greatest political engine of social and economic development the world has ever known”
  • Once he lived there, Land told me, he realised that “to a massive degree” China was already an accelerationist society: fixated by the future and changing at speed. Presented with the sweeping projects of the Chinese state, his previous, libertarian contempt for the capabilities of governments fell away
  • Without a dynamic capitalism to feed off, as Deleuze and Guattari had in the early 70s, and the Warwick philosophers had in the 90s, it may be that accelerationism just races up blind alleys. In his 2014 book about the movement, Malign Velocities, Benjamin Noys accuses it of offering “false” solutions to current technological and economic dilemmas. With accelerationism, he writes, a breakthrough to a better future is “always promised and always just out of reach”.
  • “The pace of change accelerates,” concluded a documentary version of the book, with a slightly hammy voiceover by Orson Welles. “We are living through one of the greatest revolutions in history – the birth of a new civilisation.”
  • Shortly afterwards, the 1973 oil crisis struck. World capitalism did not accelerate again for almost a decade. For much of the “new civilisation” Toffler promised, we are still waiting
Javier E

How The Economy Collapsed (As a Political Issue) - 1 views

www.buzzfeed.com/...collapsed-as-a-political-issue

perception bias economic news partisan

shared by Javier E on 01 Oct 12 - No Cached
  • the Pew Research Center for the People & the Press, which routinely asks voters about the news they are hearing about the economy. In August of 2011, Americans of all parties said the news was mostly bad, with only minor differences showing between members of different political parties.A year later, a survey taken in early September found a "record partisan gap." A full 60% of Republicans said they were hearing “mostly bad” news. Only 15% of Democrats reported the same. And independent voters split on the question, with 36% saying they were hearing mostly bad news
  • Gallup’s tracking of Americans’ reported confidence in the economy has also seen a dramatic divergence: Democrats’ confidence reached a new high in a survey released September 25; Republicans’ reached a record low.
  • “Cues and signaling from the political leaders definitely influence how people experience their own lives,”
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  • The landmark 1960 The American Voter, a study of the elections of 1948 through 1956, found something similar of voter attitudes toward the Korean War, speculating that when a voters’ views conflict with his party allegiance, “allegiance presumably will work to undo the contrary opinions.”
  • A debate over “partisan perceptual bias” has raged in the political science literature ever since, Princeton’s Larry Bartels noted that it was particularly pronounced during Ronald Reagan’s presidency, with surveys showing that “Democrats were strikingly impervious to the good economic news.” Lee Drutman noted in Slate in 2010 that something similar seemed to apply to Republicans' reporting of their own economic conditions between 2008 and 2010.
  • “The economy” simply means different tings to different people.
  • the Obama campaign has long ago stopped trying to convince Americans that the economy is better than they thought, targeting their message at a “severely conservative” Romney.
  • And while the Romney campaign made the economy the core of their campaign earlier this year, they’ve recently diversified after struggling — mostly in vain — to persuade voters despite a steady stream of negative data points. Now, the economic argument is part of a broader case the campaign tries to make
Javier E

Where We Went Wrong | Harvard Magazine - 0 views

www.harvardmagazine.com/...montage-where-we-went-wrong

DeLong prosperity roots 20th century social history economic Galbraith contingent choice public growth crisis culture policy economics

shared by Javier E on 07 May 23 - No Cached
  • John Kenneth Galbraith assessed the trajectory of America’s increasingly “affluent society.” His outlook was not a happy one. The nation’s increasingly evident material prosperity was not making its citizens any more satisfied. Nor, at least in its existing form, was it likely to do so
  • One reason, Galbraith argued, was the glaring imbalance between the opulence in consumption of private goods and the poverty, often squalor, of public services like schools and parks
  • nother was that even the bountifully supplied private goods often satisfied no genuine need, or even desire; a vast advertising apparatus generated artificial demand for them, and satisfying this demand failed to provide meaningful or lasting satisfaction.
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  • economist J. Bradford DeLong ’82, Ph.D. ’87, looking back on the twentieth century two decades after its end, comes to a similar conclusion but on different grounds.
  • DeLong, professor of economics at Berkeley, looks to matters of “contingency” and “choice”: at key junctures the economy suffered “bad luck,” and the actions taken by the responsible policymakers were “incompetent.”
  • these were “the most consequential years of all humanity’s centuries.” The changes they saw, while in the first instance economic, also “shaped and transformed nearly everything sociological, political, and cultural.”
  • DeLong’s look back over the twentieth century energetically encompasses political and social trends as well; nor is his scope limited to the United States. The result is a work of strikingly expansive breadth and scope
  • labeling the book an economic history fails to convey its sweeping frame.
  • The century that is DeLong’s focus is what he calls the “long twentieth century,” running from just after the Civil War to the end of the 2000s when a series of events, including the biggest financial crisis since the 1930s followed by likewise the most severe business downturn, finally rendered the advanced Western economies “unable to resume economic growth at anything near the average pace that had been the rule since 1870.
  • d behind those missteps in policy stood not just failures of economic thinking but a voting public that reacted perversely, even if understandably, to the frustrations poor economic outcomes had brought them.
  • Within this 140-year span, DeLong identifies two eras of “El Dorado” economic growth, each facilitated by expanding globalization, and each driven by rapid advances in technology and changes in business organization for applying technology to economic ends
  • from 1870 to World War I, and again from World War II to 197
  • fellow economist Robert J. Gordon ’62, who in his monumental treatise on The Rise and Fall of American Economic Growth (reviewed in “How America Grew,” May-June 2016, page 68) hailed 1870-1970 as a “special century” in this regard (interrupted midway by the disaster of the 1930s).
  • Gordon highlighted the role of a cluster of once-for-all-time technological advances—the steam engine, railroads, electrification, the internal combustion engine, radio and television, powered flight
  • Pessimistic that future technological advances (most obviously, the computer and electronics revolutions) will generate productivity gains to match those of the special century, Gordon therefore saw little prospect of a return to the rapid growth of those halcyon days.
  • DeLong instead points to a series of noneconomic (and non-technological) events that slowed growth, followed by a perverse turn in economic policy triggered in part by public frustration: In 1973 the OPEC cartel tripled the price of oil, and then quadrupled it yet again six years later.
  • For all too many Americans (and citizens of other countries too), the combination of high inflation and sluggish growth meant that “social democracy was no longer delivering the rapid progress toward utopia that it had delivered in the first post-World War II generation.”
  • Frustration over these and other ills in turn spawned what DeLong calls the “neoliberal turn” in public attitudes and economic policy. The new economic policies introduced under this rubric “did not end the slowdown in productivity growth but reinforced it.
  • the tax and regulatory changes enacted in this new climate channeled most of what economic gains there were to people already at the top of the income scale
  • Meanwhile, progressive “inclusion” of women and African Americans in the economy (and in American society more broadly) meant that middle- and lower-income white men saw even smaller gains—and, perversely, reacted by providing still greater support for policies like tax cuts for those with far higher incomes than their own.
  • Daniel Bell’s argument in his 1976 classic The Cultural Contradictions of Capitalism. Bell famously suggested that the very success of a capitalist economy would eventually undermine a society’s commitment to the values and institutions that made capitalism possible in the first plac
  • In DeLong’s view, the “greatest cause” of the neoliberal turn was “the extraordinary pace of rising prosperity during the Thirty Glorious Years, which raised the bar that a political-economic order had to surpass in order to generate broad acceptance.” At the same time, “the fading memory of the Great Depression led to the fading of the belief, or rather recognition, by the middle class that they, as well as the working class, needed social insurance.”
  • what the economy delivered to “hard-working white men” no longer matched what they saw as their just deserts: in their eyes, “the rich got richer, the unworthy and minority poor got handouts.”
  • As Bell would have put it, the politics of entitlement, bred by years of economic success that so many people had come to take for granted, squeezed out the politics of opportunity and ambition, giving rise to the politics of resentment.
  • The new era therefore became “a time to question the bourgeois virtues of hard, regular work and thrift in pursuit of material abundance.”
  • DeLong’s unspoken agenda would surely include rolling back many of the changes made in the U.S. tax code over the past half-century, as well as reinvigorating antitrust policy to blunt the dominance, and therefore outsize profits, of the mega-firms that now tower over key sectors of the economy
  • He would also surely reverse the recent trend moving away from free trade. Central bankers should certainly behave like Paul Volcker (appointed by President Carter), whose decisive action finally broke the 1970s inflation even at considerable economic cost
  • Not only Galbraith’s main themes but many of his more specific observations as well seem as pertinent, and important, today as they did then.
  • What will future readers of Slouching Towards Utopia conclude?
  • If anything, DeLong’s narratives will become more valuable as those events fade into the past. Alas, his description of fascism as having at its center “a contempt for limits, especially those implied by reason-based arguments; a belief that reality could be altered by the will; and an exaltation of the violent assertion of that will as the ultimate argument” will likely strike a nerve with many Americans not just today but in years to come.
  • what about DeLong’s core explanation of what went wrong in the latter third of his, and our, “long century”? I predict that it too will still look right, and important.
tongoscar

Trump trade war, tariffs giving China political, defense opportunity - Business Insider - 0 views

www.businessinsider.com/al-defense-opportunity-2019-11

shared by tongoscar on 25 Nov 19 - No Cached
  • "We're the ones that are deciding whether or not we want to make a deal," Trump said in a speech at the Economic Club of New York this month. "We're close."
  • The reality of what Beijing wants is far more complicated than an end to the recent economic hostilities. Instead, it is balancing a variety of interests, some more important than the trade war.
  • Beijing's ideal scenario includes a free hand to violate human rights in Xinjiang and Hong Kong; it includes continuing to press for reunification with Taiwan; and it includes achieving the aims of China 2025, the Chinese Communist Party's plan to transition the country's economy to one based on technology.
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  • Trump's laser focus on trade has given Beijing the latitude to deal with those and other critical issues without fear interference from the White House.
  • Trump is correct to say that the Chinese economy is slowing down, but there is little evidence to support his assertion that Beijing is "dying" to make a deal anytime soon.
  • For months, Chinese economic data has been trending down, but it's only in the past few week that policymakers have slightly lowered key interest rates to keep money flowing through the economy.
  • China has also ignored US ire over its "Made in China 2025," a plan to build up China's tech sector using methods US officials have said violate the aims of the trade war — methods that allow more state control of China's economy and encourage more intellectual-property theft.
Javier E

The Anger Wave That May Just Wipe Out Laissez-Faire Economics - The New York Times - 1 views

www.nytimes.com/...t-laissez-faire-economics.html

market fundamentalism populism theory economics crisis

shared by Javier E on 28 Jun 16 - No Cached
  • few would have guessed that the economic order built upon Mr. Reagan’s and Mrs. Thatcher’s common faith in unfettered global markets (and largely accepted by their more liberal successors Bill Clinton and Tony Blair) would be brought down by right-wing populists riding the anger of a working class that has been cast aside in the globalized economy that the two leaders trumpeted 40 years ago.
  • The so-called Brexit vote was driven by an inchoate sense among older white workers with modest education that they have been passed over, condemned by forces beyond their control to an uncertain job for little pay in a world where their livelihoods are challenged not just by cheap Asian workers halfway around the world, but closer to home by waves of immigrants of different faiths and skin tones.
  • It is the same frustration that has buoyed proto-fascist political parties across Europe. It is the same anger fueling the candidacy of Mr. Trump in the United States.
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  • Mr. Trump, the bombastic businessman who’s never held office, and Mr. Johnson, the former journalist turned mayor of London, might not put it this way, since they continue to cling to a conservative mantle. But they are riding a revolt of the working class against a 40-year-long project of the political right and its corporate backers that has dominated policy making in the English-speaking world for a generation.
  • The British political scientist Andrew Gamble at the University of Cambridge has argued that Western capitalism has experienced two transformational crises since the end of the 19th century. The first, brought about by the Depression of the 1930s, ended an era in which governments bowed to the gospel of the gold standard and were expected to butt out of the battles between labor and capital, letting markets function on their own, whatever the consequences
  • Mr. Keynes’s views ultimately prevailed, though, providing the basis for a new post-World War II orthodoxy favoring active government intervention in the economy and a robust welfare state. But that era ended when skyrocketing oil prices and economic mismanagement in the 1970s brought about a combination of inflation and unemployment that fatally undermined people’s trust in the state.
  • The Keynesian era ended when Margaret Thatcher and Ronald Reagan rode onto the scene with a version of capitalism based on tax cuts, privatization and deregulation that helped revive their engines of growth but led the workers of the world to the deeply frustrating, increasingly unequal economy of today.
  • After the Brexit vote, Lawrence Summers, former Treasury secretary under President Clinton and one of President Obama’s top economic advisers at the nadir of the Great Recession, laid out an argument for what he called “responsible nationalism,” which focused squarely on the interests of domestic workers.
  • Instead of negotiating more agreements to ease business across borders, governments would focus on deals to improve labor and environmental standards internationally. They might cut deals to prevent cross-border tax evasion.
  • There is, however, little evidence that the world’s leaders will go down that path. Despite the case for economic stimulus, austerity still rules across much of the West. In Europe, most governments have imposed stringent budget cuts — ensuring that all but the strongest economies would stall. In the United States, political polarization has brought fiscal policy — spending and taxes — to a standstill.
delgadool

Trump considers reopening U.S. economy despite coronavirus spread - 0 views

www.msn.com/...ar-BB11yyRg

shared by delgadool on 23 Mar 20 - No Cached
  • President Donald Trump is considering measures to reopen the U.S. economy, even as the highly contagious coronavirus is spreading rapidly and hospitals are bracing for a wave of virus-related deaths.
  • Trump issued guidelines a week ago that he said aimed to slow the spread of the disease over 15 days, including curbing unnecessary travel. Economic activity has ground to a halt in some states.
  • Trump, who had hoped to build his campaign for the Nov. 3 election on a booming U.S. economy, now is looking at the potential of millions of lost jobs. Many of his Republican allies fear the toll on the economy would make it harder for him to win another four-year term.
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  • "If we can take some pressure off the economy fine, but my primary focus is to make sure the virus is contained and defeated. And we're just going to have to suffer through the economic consequences.”
  • Over the last few days, some economic policy advisers have started to focus on how long lockdowns and other measures to contain the virus might last, one outside adviser said.
  • Trump believes "we are strong and need a strong economy as we deal with this crisis," the source said.
  • Moore questioned California's plan to shut down much of the economy last week. "We have to ask this question, is it worth trillions of dollars of losses?," he said on Fox News. Moore didn't immediately respond to a request for comment.
  • "We’re going to have, in my opinion, if it continues for long, because of the financial distress that people will have … a month from now, two months from now, three months from now when people are financially devastated, the domestic violence, suicides, deprivation that we’re inflicting upon ourselves," he said.
Javier E

Big Tech Has Become Way Too Powerful - The New York Times - 1 views

www.nytimes.com/...h-too-powerful-ask-google.html

politics conservative liberal technology research free market government

shared by Javier E on 21 Sep 15 - No Cached
  • CONSERVATIVES and liberals interminably debate the merits of “the free market” versus “the government.
  • The important question, too rarely discussed, is who has the most influence over these decisions and in that way wins the game.
  • Now information and ideas are the most valuable forms of property. Most of the cost of producing it goes into discovering it or making the first copy. After that, the additional production cost is often zero. Such “intellectual property” is the key building block of the new economy
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  • as has happened before with other forms of property, the most politically influential owners of the new property are doing their utmost to increase their profits by creating monopolies
  • The most valuable intellectual properties are platforms so widely used that everyone else has to use them, too. Think of standard operating systems like Microsoft’s Windows or Google’s Android; Google’s search engine; Amazon’s shopping system; and Facebook’s communication network
  • Despite an explosion in the number of websites over the last decade, page views are becoming more concentrated. While in 2001, the top 10 websites accounted for 31 percent of all page views in America, by 2010 the top 10 accounted for 75 percent
  • Amazon is now the first stop for almost a third of all American consumers seeking to buy anything
  • Google and Facebook are now the first stops for many Americans seeking news — while Internet traffic to much of the nation’s newspapers, network television and other news gathering agencies has fallen well below 50 percent of all traffic.
  • almost all of the profits go to the platforms’ owners, who have all of the bargaining power
  • The rate at which new businesses have formed in the United States has slowed markedly since the late 1970s. Big Tech’s sweeping patents, standard platforms, fleets of lawyers to litigate against potential rivals and armies of lobbyists have created formidable barriers to new entrants
  • The law gives 20 years of patent protection to inventions that are “new and useful,” as decided by the Patent and Trademark Office. But the winners are big enough to game the system. They make small improvements warranting new patents, effectively making their intellectual property semipermanent.
  • They also lay claim to whole terrains of potential innovation including ideas barely on drawing boards and flood the system with so many applications that lone inventors have to wait years.
  • Big Tech has been almost immune to serious antitrust scrutiny, even though the largest tech companies have more market power than ever. Maybe that’s because they’ve accumulated so much political power.
  • Economic and political power can’t be separated because dominant corporations gain political influence over how markets are maintained and enforced, which enlarges their economic power further. One of the original goals of antitrust law was to prevent this.
  • We are now in a new gilded age similar to the first Gilded Age, when the nation’s antitrust laws were enacted. As then, those with great power and resources are making the “free market” function on their behalf. Big Tech — along with the drug, insurance, agriculture and financial giants — dominates both our economy and our politics.
  • The real question is how government organizes the market, and who has the most influence over its decisions
  • Yet as long as we remain obsessed by the debate over the relative merits of the “free market” and “government,” we have little hope of seeing what’s occurring and taking the action that’s needed to make our economy work for the many, not the few.
katherineharron

Trump's rebuke of Fauci encapsulates rejection of science in virus fight - CNNPolitics - 0 views

www.cnn.com/...index.html

crisis

shared by katherineharron on 14 May 20 - No Cached
  • Trump broke with Fauci, who has served under six presidents, on Wednesday over the infectious disease expert's warnings that getting businesses and schools back open too quickly would lead to unnecessary suffering and death.
  • The delicate dynamic between Fauci and Trump has been watched for months. Its latest fraying marks the most pronounced clash yet in the tussle between science and politics that has long plagued the administration's fight against the coronavirus.
  • He has yet to initiate a serious national conversation about the vital need to get the economy firing again balanced against the level of death and illness that is acceptable to the country given that the pandemic could worsen if states open up too quickly.
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  • Ironically, another of Trump's failings, one in which Fauci may be in some ways complicit as a member of the coronavirus task force -- to stand up a comprehensive national testing and tracking system -- may frustrate the President's effort to get the country up and running quickly with no vaccine in sight.
  • The gulf between Trump's approach and scientific rationality is expected to be further underscored Thursday with House testimony from Dr. Rick Bright, who says he was ousted from his job developing a coronavirus vaccine because he questioned Trump's enthusiasm for hydroxychloroquine, an unproven treatment for Covid-19. Bright will warn, according to his prepared testimony, that the US could face "unprecedented illness" and the "darkest winter in modern history" if it doesn't do a better job of preparing for a second wave of the pandemic.
  • Trump's use of the world "acceptable" in relation to Fauci's comments is instructive about how he sees subordinates in his administration. The history of his three years in power shows that officials who do not provide the justification and the pretext for his actions or who prefer to act on their own perceptions of the national interest are eventually ousted.
  • In recent weeks, Trump has shifted from an approach rooted in benchmarks for phased state openings based on a waning of the virus to one based on opening the economy whatever the cost.
  • Rising attacks on Fauci have taken their toll on his standing with the President's supporters, even though he is warmly regarded by the rest of the country. In a new CNN/SSRS poll, 84% of Republicans say they trust Trump to give them information on the virus. Only 61% of the same slice of the electorate say they trust Fauci, who has headed the National Institute of Allergy and Infectious Diseases since 1984.
  • "I'm a scientist, a physician and a public health official. I give advice, according to the best scientific evidence," he said. "I don't give advice about economic things."
Javier E

Death by Data - NYTimes.com - 0 views

www.nytimes.com/...avid-brooks-death-by-data.html

data politics imagination vision quantification agenda issues demographics individual Obama

shared by Javier E on 05 Nov 14 - No Cached
  • data-driven style of politics is built on a questionable philosophy and a set of dubious assumptions. Data-driven politics is built on a philosophy you might call Impersonalism. This is the belief that what matters in politics is the reaction of populations and not the idiosyncratic judgment, moral character or creativity of individuals.
  • Data-driven politics assumes that demography is destiny, that the electorate is not best seen as a group of free-thinking citizens but as a collection of demographic slices.
  • This method assumes that mobilization is more important than persuasion; that it is more important to target your likely supporters than to try to reframe debates or persuade the whole country.
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  • This method puts the spotlight on the reactions of voting blocs and takes the spotlight off the individual qualities of candidates. It puts the spotlight on messaging and takes the spotlight off product: actual policies.
  • It puts the spotlight on slight differences across the socio-economic spectrum and takes the spotlight off the power of events to reframe the whole mood and landscape.
  • Another victim was President Obama. His 2012 campaign was legendary from an analytic point of view, and, of course, it was victorious. But it lacked a policy agenda and produced no mandate. Without a compelling agenda, the administration has projected an image of reactive drift and lost public confidence.
  • Some politicians, like F.D.R. or Ronald Reagan, can reframe debates and envision coalitions that don’t exist. Their visions emerge out of unique life experiences, which are unusual but have broad appeal. They build trust not through a few targeted messages but by fully embodying a moment and a people. They often don’t pander to existing identities but arouse different identities.
  • Obviously demography matters a lot. But, at heart, politics is a personal enterprise. Voters are looking for quality of leadership, character, vision and solidarity that defies quantification. Candidates like Daniel Patrick Moynihan or Jerry Brown can arouse great loyalty in ways that are impossible to predict.
  • In the midst of this scuffling economy, voters are thinking as Americans and not as members of a niche. They’re asking: What can be done to kick-start America? They’re not asking: How can I guarantee affordable contraception?
  • The more you look at political history, the more you see that political imagination is the rarest and most valuable of qualities. Voters don’t always know what they want, but they look to leaders to jump ahead of the current moment and provide visions they haven’t thought of.
  • other victims include the Democratic senators in red states. Winning in a state that the other party dominates is a personal enterprise. It requires an ineffable individual connection with voters. It requires an idiosyncratic approach to issues. By eclipsing individual quirks with generic messages, the data-driven style deprives outnumbered candidates of precisely what they need to survive.
  • Data-driven candidates sacrifice their own souls. Instead of being inner-directed leaders driven by their own beliefs, they become outer-directed pleasers driven by incomplete numbers.
Javier E

Jordan Peterson Comes to Aspen - The Atlantic - 0 views

www.theatlantic.com/...563813

Psychology trans error monogamy gender university learning free speech

shared by Javier E on 01 Jul 18 - No Cached
  • Peterson is traveling the English-speaking world in order to spread the message of this core conviction: that the way to fix what ails Western societies is a psychological project, targeted at helping individuals to get their lives in order, not a sociological project that seeks to improve society through politics, or popular culture, or by focusing on class, racial, or gender identity.
  • the Aspen Ideas Festival, which is co-sponsored by the Aspen Institute and The Atlantic, was an anomaly in this series of public appearances: a gathering largely populated by people—Democrats and centrist Republicans, corporate leaders, academics, millionaire philanthropists, journalists—invested in the contrary proposition, that the way to fix what ails society is a sociological project, one that effects change by focusing on politics, or changing popular culture, or spurring technological advances, or investing more in diversity and inclusiveness.
  • Many of its attendees, like many journalists, are most interested in Peterson as a political figure at the center of controversies
  • ...21 more annotations...
  • Peterson deserves a full, appropriately complex accounting of his best and worst arguments; I intend to give him one soon. For now, I can only tell you how the Peterson phenomenon manifested one night in Aspen
  • “For the first time in human history the spoken word has the same reach as the written word, and there are no barriers to entry. That’s a Gutenberg revolution,” he said. “That’s a big deal. This is a game changer. The podcast world is also a Gutenberg moment but it’s even more extensive. The problem with books is that you can’t do anything else while you’re reading. But if you’re listening to a podcast you can be driving a tractor or a long haul truck or doing the dishes. So podcasts free up two hours a day for people to engage in educational activity they otherwise wouldn’t be able to engage in. That’s one-eighth of people’s lives. You’re handing people a lot of time back to engage in high-level intellectual education.
  • that technological revolution has revealed something good that we didn’t know before: “The narrow bandwidth of TV has made us think that we are stupider than we are. And people have a real hunger for deep intellectual dialogue.”
  • I’ve known for years that the university underserved the community, because we assumed that university education is for 18- to 22-year-olds, which is a proposition that’s so absurd it is absolutely mind-boggling that anyone ever conceptualized it. Why wouldn’t you take university courses throughout your entire life? What, you stop searching for wisdom when you’re 22? I don’t think so. You don’t even start until you’re like in your mid 20s. So I knew universities were underserving the broader community a long time ago. But there wasn’t a mechanism whereby that could be rectified.
  • Universities are beyond forgiveness, he argued, because due to the growing ranks of administrators, there’s been a radical increase in tuition. “Unsuspecting students are given free access to student loans that will cripple them through their 30s and their 40s, and the universities are enticing them to extend their carefree adolescence for a four year period at the cost of mortgaging their future in a deal that does not allow for escape through bankruptcy,” he complained. “So it’s essentially a form of indentured servitude. There’s no excuse for that … That cripples the economy because the students become overlaid with debt that they’ll never pay off at the time when they should be at the peak of their ability to take entrepreneurial risks. That’s absolutely appalling.”
  • A critique I frequently hear from Peterson’s critics is that everything he says is either obvious or wrong. I think that critique fails insofar as I sometimes see some critics calling one of his statements obvious even as others insist it is obviously wrong.
  • a reliable difference among men and women cross-culturally is that men are more aggressive than women. Now what's the evidence for that? Here's one piece of evidence: There are 10 times as many men in prison. Now is that a sociocultural construct? It's like, no, it's not a sociocultural construct. Okay?
  • Here's another piece of data. Women try to commit suicide more than men by a lot, and that's because women are more prone to depression and anxiety than men are. And there are reasons for that, and that's cross-cultural as well. Now men are way more likely to actually commit suicide. Why? Because they're more aggressive so they use lethal means. So now the question is how much more aggressive are men than women? The answer is not very much. So the claim that men and women are more the same than different is actually true. This is where you have to know something about statistics to understand the way the world works, instead of just applying your a priori ideological presuppositions to things that are too complex to fit in that rubric.
  • So if you draw two people out of a crowd, one man and one woman, and you had to lay a bet on who was more aggressive, and you bet on the woman, you'd win 40 percent of the time. That's quite a lot. It isn't 50 percent of the time which would be no differences. But it’s a lot. There are lots of women who are more aggressive than lots of men. So the curves overlap a lot. There's way more similarity than difference. And this is along the dimension where there's the most difference. But here's the problem. You can take small differences at the average of a distribution. Then the distributions move off to the side. And then all the action is at the tail. So here's the situation. You don't care about how aggressive the average person is. It's not that relevant. What people care about is who is the most aggressive person out of 100, because that's the person you'd better watch out for.
  • Whenever I'm interviewed by journalists who have the scent of blood in their nose, let's say, they're very willing and able to characterize the situation I find myself in as political. But that's because they can't see the world in any other manner. The political is a tiny fraction of the world. And what I'm doing isn't political. It's psychological or theological. The political element is peripheral. And if people come to the live lectures, let's say, that's absolutely self-evident
  • In a New York Times article titled, “Jordan Peterson, Custodian of the Patriarchy,” the writer Nellie Bowles quoted her subject as follows:
  • Violent attacks are what happens when men do not have partners, Mr. Peterson says, and society needs to work to make sure those men are married. “He was angry at God because women were rejecting him,” Mr. Peterson says of the Toronto killer. “The cure for that is enforced monogamy. That’s actually why monogamy emerges.” Mr. Peterson does not pause when he says this. Enforced monogamy is, to him, simply a rational solution. Otherwise women will all only go for the most high-status men, he explains, and that couldn’t make either gender happy in the end.
  • Ever since, some Peterson critics have claimed that Peterson wants to force women to have sex with male incels, or something similarly dystopian.
  • ...it's an anthropological truism generated primarily through scholars on the left, just so everybody is clear about it, that societies that use monogamy as a social norm, which by the way is virtually every human society that ever existed, do that in an attempt to control the aggression that goes along with polygamy. It's like ‘Oh my God, how contentious can you get.’ Well, how many of you are in monogamous relationships? A majority. How is that enforced?...
  • If everyone you talk to is boring it’s not them! And so if you're rejected by the opposite sex, if you’re heterosexual, then you're wrong, they're not wrong, and you've got some work to do, man. You've got some difficult work to do. And there isn't anything I've been telling young men that's clearer than that … What I've been telling people is take the responsibility for failure onto yourself. That's a hint that you've got work to do. It could also be a hint that you're young and useless and why the hell would anybody have anything to do with you because you don't have anything to offer. And that's rectifiable. Maturity helps to rectify that.
  • And what's the gender? Men. Because if you go two standard deviations out from the mean on two curves that overlap but are disjointed, then you derive an overwhelming preponderance of the overrepresented group. That's why men are about 10 times more likely to be in prison.  
  • Weiss: You are often characterized, at least in the mainstream press, as being transphobic. If you had a student come to you and say, I was born female, I now identify as male, I want you to call me by male pronouns. Would you say yes to that?
  • Peterson: Well, it would depend on the student and the context and why I thought they were asking me and what I believe their demand actually characterized, and all of that. Because that can be done in a way that is genuine and acceptable, and a way that is manipulative and unacceptable. And if it was genuine and acceptable then I would have no problem with it. And if it was manipulative and unacceptable then not a chance. And you might think, ‘Well, who am I to judge?’ Well, first of all, I am a clinical psychologist, I've talked to people for about 25,000 hours. And I'm responsible for judging how I am going to use my words. I'd judge the same way I judge all my interactions with people, which is to the best of my ability, and characterized by all the errors that I'm prone to. I'm not saying that my judgment would be unerring. I live with the consequences and I'm willing to accept the responsibility.
  • But also to be clear about this, it never happened––I never refused to call anyone by anything they had asked me to call them by, although that's been reported multiple times. It's a complete falsehood. And it had nothing to do with the transgender issue as far as I'm concerned.
  • type one and type two error problem
  • note what his avowed position is: that he has never refused to call a transgender person by their preferred pronoun, that he has done so many times, that he would always try to err on the side of believing a request to be earnest, and that he reserves the right to decline a request he believes to be in bad faith. Whether one finds that to be reasonable or needlessly difficult, it seems irresponsible to tell trans people that a prominent intellectual hates them or is deeply antagonistic to them when the only seeming conflict is utterly hypothetical and ostensibly not even directed against people that Peterson believes to be trans, but only against people whom he does not believe to be trans
katherineharron

Trump pursues his political obsessions as stark 100,000 coronavirus deaths landmark loo... - 0 views

www.cnn.com/...index.html

shared by katherineharron on 26 May 20 - No Cached
  • Sometime in the next few days, the 100,000th American will succumb to Covid-19 in a pandemic that President Donald Trump once predicted would just "miraculously" disappear.
  • In his most politically significant maneuver, he heaped intense pressure on North Carolina's Democratic governor to permit a normal, crowded Republican National Convention, despite fears such a mass gathering could seed virus hot spots. Trump warned he could pull the huge money-earner out of Charlotte, which was picked to play host in August.
  • And he indulged his preoccupations on his tax returns, Hillary Clinton, Fox News, slanders against MSNBC host Joe Scarborough, the Russia investigation, Joe Biden's mental health, former Attorney General Jeff Sessions, mail-in voting in November and highlighted dangerous and unproven Covid-19 therapies promoted on conservative media he has tested himself.
  • ...11 more annotations...
  • "For as long as we have citizens willing to follow their example, to carry on their burden, to continue their legacy, then America's cause will never fail and American freedom will never, ever die."
  • But that doesn't mean it isn't jarring, as the most wrenching moment so far approaches in the nation's battle against a pandemic that while ebbing in terms of total deaths is trending up in 18 states, is steady in 22 and easing in 10 more. More than 98,000 people in the US have now died from the coronavirus and more than 1.6 million have been infected. More than 30 million Americans have lost their jobs and the unemployment rate is approaching Great Depression levels.
  • There was little evidence of a deeper meaning to his presidency at this stage than personal and political grievances.
  • No White House could have been fully prepared for the disaster and subsequent economic hollowing of this year's pandemic
  • Trump spent much of Memorial Day, fulminating against Cooper, complaining that the North Carolina governor was "unable to guarantee" the arena for the convention in August can be filled to capacity. The President is determined to deploy the full pageantry of convention season to portray a nation and economy in the full throes of what he calls a "transition to greatness."
  • Yet such a spectacle as the Republican convention seems utterly incongruous with real-world events. Sports teams that use such arenas are expecting to play without fans for at least months in a bio-secure environment. The prospect of thousands of delegates pouring into convention cities from all over the country, including coronavirus hotspots, is a huge headache for organizers.
  • "In other words, we would be spending millions of dollars building the Arena to a very high standard without even knowing if the Democrat Governor would allow the Republican Party to fully occupy the space."
  • It was not immediately clear whether Trump and the Republican National Committee are serious about pulling the convention from Charlotte.
  • Trump has used federal resources multiple times to fly to his resorts and golf courses. Trump's two rounds this weekend struck critics as inappropriate during a national crisis and on a weekend when American remembers its war dead.
  • "Nearly 100,000 lives have been lost, and tens of millions are out of work. Meanwhile, the president spent his day golfing," Biden wrote in a tweet accompanying an online ad Saturday.
  • Trump may not come under such criticism had he not been so dismissive of Obama's afternoons on the golf course -- and saying he wouldn't have time to play golf if he was elected president.
marleen_ueberall

Markets and Governments: A Historical Perspective - The Globalist - 0 views

www.theglobalist.com/ments-a-historical-perspective

markets governments

shared by marleen_ueberall on 28 Mar 20 - No Cached
  • The idea that competitive markets are sufficient to ensure efficient outcomes and stable economies is under heavy intellectual fire
  • The crisis has prompted a fundamental re-think of the relationship between markets and governments
  • but between competing systems of political economy and models of governance.
  • ...25 more annotations...
  • Striking the right balance between markets and government is the central issue in policy debates over economic developmen
  • What is the role of governments in promoting economic growth?
  • What can governments do to seize the opportunities of globalization, while minimizing its downsides?
  • we have to recognize that the tension between markets and government is not new. In fact, it has been the central issue in the evolution of political economy over the last 200 years.
  • There have been three distinct phases in this evolution.
  • Phase One: The rise of the market
  • The “rise of the market” began in the late 18th century, shaped by the writings of Adam Smith and David Ricardo. The “invisible hand” of the market guided supply and demand toward equilibrium and efficiency.
  • This phase came to an end in the 1930s, when the concept of self-correcting markets collapsed under the weight of the Great Depression.
  • Falling prices, instead of bringing demand and supply into equilibrium,
  • Phase Two: The rise of government
  • markets were inherently unstable. Left on their own, they may not always self-correct
  • Government intervention was necessary to boost aggregate demand during periods of high unemployment.
  • The 1940s also saw the advent of the welfare state.
  • The welfare state was enabled through redistributive taxation and government regulation.
  • Phase Three: The return of the market
  • This phase began with growing disenchantment with government’s ability to deliver and was driven forward mainly by U.S.-based economists
  • The stagflation of the 1970s — persistently high inflation and unemployment — called into question the ability of governments to fine-tune the economy. Meanwhile, the welfare state began to impose an unsustainable fiscal burden,
  • Friedrich Hayek and Milton Friedman led the charge against “Big Government.” They argued eloquently how an overreaching government dulled the fundamental human instincts that power the capitalist system:
  • In the 1980s, U.S. President Ronald Reagan and UK Prime Minister Margaret Thatcher reduced taxes, deregulated industries, privatized state-owned enterprises, curbed union power, and scaled back welfare programs. The global economy boomed.
  • Phase Four: Balancing markets and governments
  • The financial crisis has revealed significant imperfections in market mechanisms: information asymmetry, moral hazard, systemic risks and behavioral or nonrational motivators of choice.
  • In a more globalized and complex economy, governments have fewer levers to pull
  • It has also revealed the inherent limitations of governmen
  • Neither market fundamentalism nor central planning has worked.
  • Yet one thing is certain: The choice is not between big government and small government. It is about creating effective government. What matters is what governments do, not how big they are.
dicindioha

What's at Stake in a Health Bill That Slashes the Safety Net - The New York Times - 0 views

www.nytimes.com/...at-slashes-the-safety-net.html

healthcare economy government spending

shared by dicindioha on 24 Mar 17 - No Cached
  • It is startling to realize just how much the social safety net expanded during Barack Obama’s presidency. In 2016, means-tested entitlements like Medicaid and food stamps absorbed 3.8 percent of the nation’s gross domestic product, almost a full percentage point more than in 2008
  • Public social spending writ large — including health care, pensions, unemployment insurance, poverty alleviation and the like — reached 19.3 percent of G.D.P.
  • Government in the United States still spends less than most of its peers across the industrialized world to support the general welfare of its citizens.
  • ...11 more annotations...
  • Last week, President Trump’s sketch of a budget underscored how little interest he has in the nation’s social insurance programs — proposing to shift $54 billion next year to the military
  • Republicans in the House plan to vote this week to undo the Affordable Care Act. That law was Mr. Obama’s singular contribution toward an American welfare state, the biggest expansion of the nation’s safety net in half a century.
  • Welfare reform did hurt many poor people by converting antipoverty funds into block grants to the states. But it was accompanied by a big increase in the earned-income tax credit, the nation’s most effective antipoverty tool today.
  • “No other Congress or administration has ever put forward a plan with the intention of having fewer people covered.”
  • Who knows where this retrenchment takes the country? Maybe attaching a work requirement to Medicaid, as conservatives propose, will prod the poor to get a job. Or perhaps it will just cut more people from Medicaid’s rolls. Further up the income ladder, losing a job will become more costly when it means losing health insurance, too.
  • Millions of Americans — poor ones, mainly — will use much less health care. They will make fewer outpatient visits, have fewer mammograms and cholesterol checks.
  • In any event, public health insurance will take a big hit.
  • Under the House Republican plan, 24 million more Americans will lack health insurance by 2026, according to the nonpartisan Congressional Budget Office.
  • Might depression and mental health problems destabilize families, feeding down into the health, education and well-being of the next generation?
  • Yet it is worth remembering that among advanced nations, the United States is a laggard in life expectancy and has one of the highest infant mortality rates.
  • If American history provides any sort of guidance, it is that continuing to shred the social safety net will definitely make things worse.
  • dicindioha on 24 Mar 17
     
    Directing spending away from American people and their access to healthcare is a definite possibility for Trump. It will be interesting to see the effect this has on the healthcare market and the American people. This article says it will probably hurt many poor people and decrease their health.
Javier E

Pepperoni Turns Partisan - NYTimes.com - 0 views

www.nytimes.com/...-pepperoni-turns-partisan.html

political science politics parties interests discourse partisan

shared by Javier E on 08 Mar 15 - No Cached
  • If you want to know what a political party really stands for, follow the money
  • Major donors, however, generally have a very good idea of what they are buying, so tracking their spending tells you a lot.
  • what do contributions in the last election cycle say? The Democrats are, not too surprisingly, the party of Big Labor (or what’s left of it) and Big Law: unions and lawyers are the most pro-Democratic major interest groups.
  • ...17 more annotations...
  • Republicans are the party of Big Energy and Big Food: they dominate contributions from extractive industries and agribusiness. And they are, in particular, the party of Big Pizza.
  • pizza partisanship tells you a lot about what is happening to American politics as a whole.
  • Why should pizza, of all things, be a divisive issue
  • The immediate answer is that it has been caught up in the nutrition wars
  • the pizza sector has chosen instead to take a stand for the right to add extra cheese.
  • The rhetoric of this fight is familiar. The pizza lobby portrays itself as the defender of personal choice and personal responsibility. It’s up to the consumer, so the argument goes, to decide what he or she wants to eat, and we don’t need a nanny state telling us what to do.
  • it doesn’t hold up too well once you look at what’s actually at stake in the pizza disputes.
  • Nobody is proposing a ban on pizza, or indeed any limitation on what informed adults should be allowed to eat. Instead, the fights involve things like labeling requirements — giving consumers the information to make informed choices — and the nutritional content of school lunches, that is, food decisions that aren’t made by responsible adults but are instead made on behalf of children.
  • Nutrition, where increased choice can be a bad thing, because it all too often leads to bad choices despite the best of intentions, is one of those areas — like smoking — where there’s a lot to be said for a nanny state.
  • diet isn’t purely a personal choice, either; obesity imposes large costs on the economy as a whole.
  • But you shouldn’t expect such arguments to gain much traction
  • For one thing, free-market fundamentalists don’t want to hear about qualifications to their doctrine
  • Also, with big corporations involved, the Upton Sinclair principle applies: It’s difficult to get a man to understand something when his salary depends on his not understanding it
  • nutritional partisanship taps into deeper cultural issues.
  • At one level, there is a clear correlation between lifestyles and partisan orientation: heavier states tend to vote Republican, and the G.O.P. lean is especially pronounced in what the Centers for Disease Control and Prevention call the “diabetes belt” of counties, mostly in the South, that suffer most from that particular health problem
  • At a still deeper level, health experts may say that we need to change how we eat, pointing to scientific evidence, but the Republican base doesn’t much like experts, science, or evidence. Debates about nutrition policy bring out a kind of venomous anger — much of it now directed at Michelle Obama, who has been championing school lunch reforms — that is all too familiar if you’ve been following the debate over climate change.
  • It is, instead, a case study in the toxic mix of big money, blind ideology, and popular prejudices that is making America ever less governable.
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